1 of 3 - FINRA Audit Checklist (Rule 303(a)(4), Rule 302(a)(1), Rule 302(a)(2), Rule 302(b), Rule 303(d),(f), Rule 303(c), Rule 303(b), Rule 303(b)(1), Rule 303(b)(2), Rule 302(c),(d))

Modified on Mon, Jul 1 at 3:49 PM

This article will cover how to update your platform to meet FINRA platform regulations. These are all requirements as set by FINRA.

For commonly asked questions from FINRA, see this article.

This article will cover:

FINRA Rules List
Update Public Landing Page
Rule: 303(a)(4) - Make Offer Public
Rule 302(a)(2) , 302(b) - Include Links to Education Materials in Welcome Email
Rule 303(d), 303(f) - Customize the “Notice of Invested Commitment”
Rule 303(c) - Add Q & A Section to Offer
Rule 303(b) , 303(b)(1), 303(b)(2) - Add Income Verification to Investor Flow
Rule 302(c) , 302(d) - Update the “Promoters' Compensation Disclosure”

FINRA Rules List

Rule 303(a)(4)
Rule 302(a)(1)
Rule 302(a)(2)
Rule 302(b)
Rule 303(d),(f)
Rule 303(c)
Rule 303(b)
Rule 303(b)(1)
Rule 303(b)(2)
Rule 302(c),(d)

Update Public Landing Page

How To:

Select Platform from the left menu
Click Settings
Select Features
Check the option for Marketplace

Rule: 303(a)(4) - Make Offer Public

How To:

Select Platform from the left menu
Click Settings
Select Features
Uncheck the Require Sign In to View Offers box
Select Offers from the left menu
Click into your offer
Expand the Access menu
Ensure that your offer status is Open and the visibility is Public

Rule 302(a)(1) - Acknowledge Electronic Delivery

How To:

Select Platform from the left menu
Click Forms
Use the pencil icon to edit an existing form
Click Add a New Field
Use the Field Type drop-down menu to select Acknowledgement
Toggle on the options for Account Signup and

Sample Acknowledgement Text:

By checking this box, I give my consent to receiving electronic delivery of information from the Portal. I understand that the Portal will email me my transaction receipts and other necessary information through the email I provided, which I can change anytime.

Rule 302(a)(2) , 302(b) - Include Links to Education Materials in Welcome Email

How To:

Select Engagement from the left menu
Click Email Templates
Click Account
Select New Sign Up
Edit the text of the email sent to new users, and include your links

Rule 303(d), 303(f) - Customize the “Notice of Invested Commitment”

How To:

Select Engagement from the left menu
Click Email Templates
Click Transactions
Select Transaction Created
Edit the text of the email sent when an investor makes a commitment, including confirmation that cancellation is possible up to 48 hours before the end date of the campaign
- For sample text, please click here

Rule 303(c) - Add Q & A Section to Offer

How To:

Select Offers from the left menu
Click in to one of your offers
Choose Display from the left
Check the box to Enable Question & Answer Forum

Rule 303(b) , 303(b)(1), 303(b)(2) - Add Income Verification to Investor Flow

How To:

Select Offers from the left menu
Click in to one of your offers
Choose Investor Flow from the left
Click Add Investment Step
Choose Income Verification (Reg-CF) from the menu
- Once this step is added, you will be prompted to add the required links to your Education Materials and Issuer Form C
  - If you have not yet filed a Form C at the time of your demo, you can include a link to the form: https://www.sec.gov/files/formc.pdf
- You can add these links at any time by clicking on the gear icon next to Income Verification (Reg-CF)

Rule 302(c) , 302(d) - Update the “Promoters' Compensation Disclosure”

How To:

Select Platform from the left menu
Click Settings
Select Themes
Add text to the Investment Platform Disclaimer

Example addition if you are collecting fees:

The Site is compensated through investor transaction fees and success fees from issuing companies. We receive transaction fees from investors, and we receive percentage fees of gross proceeds of offerings from issuing companies, and a further percentage fees of gross proceeds of offerings in the form of equivalent offered securities.

NOTE: If you know the fee amount you will be charging issuers or investors, you may want to include the exact number in your disclaimer or in your FAQ section, as this has been requested by FINRA on several demos.

Adding the Income Verification (Reg-CF) step to the Investor Flow of an offer (above) will prompt the display of standard disclosures to investors prior to submission of payment.

If additional disclosures are required, they can be added to your Forms.

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