Group Holds Roundtable Discussions on Securities Best Practices with U.S. Regulatory Agencies & Dept. of Commerce
Following the IRCTC action and an increased concern about the practices of raising capital by unregistered firms and persons, fraud and misrepresentation in the EB-5 program, a group of securities attorneys, broker dealers and investment advisors met with officials and regulators with the Securities & Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA), North American Securities Administrators Association (NASAA) and the Department of Commerce to discuss transparency, compliance and oversight for the industry as well as engage in a discussion concerning education for those unfamiliar with U.S. securities laws and practices.
The predominance of unregistered “consultants” and firms involved in raising of capital and the payment of fees to unregistered finders and agents as well as a lack of investor protections and transparency concerning the marketing and promotion of offerings to investors in the EB-5 program were a few of the many topics covered in the discussions.
The candid discussions involved suggestions on bringing in standards, procedures and best practices from other capital markets to improve the transparency and accountability for issuers and those who assist them in the capital raise, promotion and marketing of these securities in a legally compliant manner. The purpose of the meetings was to engage with the regulators to see how private sector stakeholders could encourage compliance with securities laws through education and awareness to reduce the incidences of fraud and misrepresentation by unregistered persons and increase investor protections afforded to them under the law.
- Michael Gibson is the managing director of USAdvisors and publisher of EB5Info.com and EB5News.com and is a Registered Investment Advisor (CRD# 157403). He established USAdvisors.org as an organization to assist foreign nationals with their EB-5 investment decisions through risk analysis and due diligence.
- Adam Gale is co-chair of the firm’s Investment Funds Group. He focuses his practice on counseling hedge funds, private equity funds, broker-dealers, banks, and registered investment companies on regulatory and compliance issues, as well as on formation and structuring.
- Douglas Ellenoff, a member of the firm since its founding in 1992, is a corporate and securities attorney with a specialty in business transactions and corporate financings.
- Sara Hanks, co-founder and CEO of CrowdCheck, is an attorney with over 30 years of experience in the corporate and securities field. CrowdCheck helps entrepreneurs through the disclosure and due diligence process. Sara’s most recent position was General Counsel of the Congressional Oversight Panel, the overseer of the Troubled Asset Relief Program (TARP). Years prior, while at the SEC and as Chief of the Office of International Corporate Finance, she led the team drafting regulations that put into place a new generation of rules governing the capital-raising process.
- DJ Paul, chief strategy officer with GATE Impact, develops solutions to facilitate and expand private and alternative asset transactions, including crowdfunding and 506/Regulation D securities. DJ is nationally known for his expertise in regulatory compliance and electronic infrastructures and is regarded as one of the pioneers of the crowdfund investing movement. His desire to find solutions that work for investors, issuers and federal policymakers during and immediately after passage of the JOBS Act led him to coordinate the first post-JOBS Act meeting between the Securities Exchange Commission and crowdfunding stakeholders.
- Vincent Molinari, founder and chief executive officer of GATE Technologies, has been the driving force behind GATE’s mission to create new market infrastructure that brings transparency, efficiency, and liquidity to the unstructured global alternative asset markets. He is responsible for GATE’s strategic planning and business initiatives, including corporate alliances and strategic partnerships. He is a founding board member and co-chairman of the Crowdfund Intermediary Regulatory Advocates (CFIRA) which was established by the crowdfunding industry’s leading platforms and experts to work with the SEC, FINRA, and other affected governmental and quasi-governmental entities on establishing industry standards and best practices. Molinari was named as one of the Top 10 Most Influential People in Business Crowdfunding in Forbes Magazine.