FINRA Joins The Crowd: Request For Comment On Crowdfunding

Today, FINRA published Notice 12-34 requesting public comment on the scope of FINRA regulation that would be appropriate for member firms active in crowdfunding offerings. This is a welcome request, as it confirms FINRA's role as the SRO with oversight over funding portals (which are not broker-dealers), and also seems to recognize that regulation of funding portals should be "right-sized" and that the entire regulatory framework applicable to broker-dealers needn't be applied to funding portals...