Does Fundable act as a broker or dealer in securities transactions? Is Fundable a registered broker-dealer with the SEC or FINRA?
Fundable is not registered as a broker or dealer. The company does not meet the definition of either a “broker” or a “dealer” as defined under Section 3(a)(4) of the Securities Exchange Act of 1934, as amended.
What Are the Qualifications of a Broker or Dealer?
Broker:
A broker is defined as any person or entity engaged in the business of effecting transactions in securities for the account of others. Key qualifications include:
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Handling securities transactions on behalf of others (e.g., buying or selling securities for clients).
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Receiving compensation or commissions for transactions.
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Soliciting or advising others on securities transactions as part of a business.
Dealer:
A dealer is defined as any person or entity engaged in the business of buying and selling securities for their own account, through a broker or otherwise. Key qualifications include:
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Buying and selling securities as part of a regular business.
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Acting as a market maker in certain securities.
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Providing liquidity by offering to buy or sell securities.
Exceptions:
Certain parties may be excluded from being classified as brokers or dealers, such as:
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Individuals buying or selling securities for their own investment and not for others.
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Issuers of securities transacting their own securities.
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Entities not receiving compensation tied to securities transactions.
That being said, Fundable users are strongly advised to seek independent legal counsel regarding regulatory compliance when using Fundable.