How It Works

Overview
Broker-Dealers
Let FundHub Do The Hard Work For You

For Broker-Dealers involved in Regulation D and other private equity offerings, SEC compliance can be a nightmare. From making sure investors are accredited to making certain issuers comply with "Bad Actor" rules, there are significant pitfalls to avoid. When Title III of the JOBS Act goes into effect, a completely different set of rules will apply to the new equity crowdfunding offers. FundHub's team of experts will handle compliance issues so broker-dealers can focus on issuing and selling securities so its clients can be funded. We implement the prevailing standards of investor accreditation, make sure you do not run afoul of Bad Actor rules for issuers, and make it possible for broker-dealers to venture into the JOBS Act equity crowdfunding world by minimizing compliance costs.

Accredited Investors
Accredited Investors
When the SEC lifted the 80-year-old ban on general solicitation, it added a new legal requirement that broker-dealers take "reasonable steps" to assure accredited investors are, in fact, accredited investors. No longer can a broker-dealer have an investor in a Regulation D offering self-certify his or her accredited status by just filling out a form. At FundHub, we take those "reasonable steps" and verify the status of accredited investors for broker-dealers. We give you peace of mind that the investors are accredited, and provide you with a FundHub certification that assures you that the SEC's criteria have been met, and more if necessary, and that the investor is accredited. FundHub provides investors with a safe means of having their personal financial information protected, giving a comfort level to potential investors all along the way. At FundHub, we make this regulatory compliance affordable for broker-dealers.
Reg D Bad-Actor Check
Reg D Bad-Actor Check
In 2013, the SEC dramatically changed the rules for many private equity offerings and now requires the disqualification of felons and other "Bad Actors" from some investment offerings. These new consumer protection provisions are a field of landmines for an entrepreneur of company raising money, who now must disclose if officers, directors or certain minority shareholders have felony convictions or have run afoul of other Bad Actor provisions. FundHub efficiently and economically researches these matters for issuers. At FundHub, we thoroughly vet every "covered person" of an issuer to be sure there are no "bad acts" hiding in the shadows. FundHub will certify a "covered person" as passing our stringent "Bad Actor" test, and will provide evidence of any "bad acts" we find so the issuer may disclose them as part of the offering. FundHub's service is fast, reliable and affordable. We take away the worry, and make compliance easy.
JOBS Act Investor Levels
JOBS Act Investor Levels
When the JOBS Act goes into effect, broker-dealers will have two new levels of investor certification to worry about. Under the JOBS Act, all potential investors are categorized as either having income or a net worth under $100,000, or income or a net worth of $100,000 or more. At FundHub, we allow investors to be certified in one category or the other and provide broker-dealers with a FundHub certification that assures the amount an investor is legally allowed to invest in an offering under the JOBS Act. FundHub provides investors with a safe means of having their personal financial information protected, giving a comfort level to potential investors all along the way that their personal information will not be shared with anyone.
JOBS Act Bad-Actor Checks
JOBS Act Bad-Actor Check
In their 585 pages of proposed JOBS Act rules, the SEC has proposed regulatory and background checks for certain officers, directors and others involved with an issuer. These proposed rules appear very similar to the rules disqualifying felons and other "Bad Actors" from Regulation D offerings. FundHub will provide an economical and efficient means of vetting issuers to be sure there are no "bad actors" that will cause problems with the offering. Just as we do with Regulation D offerings, FundHub will certify that all of the key personnel of an issuer pass our stringent background tests, and will provide evidence of any problems we find so the broker-dealer may disclose them as part of the JOBS ACT offering. FundHub's service takes away the compliance concerns for broker-dealers, making entry into the JOBS Act market painless and profitable.
PPM Generation
PPM Generation
One of the biggest expenses for a company raising money is creating a private placement memoranda (PPM) for their offering. Law firms charge exorbitant amounts to produce these memoranda, and in many cases, there is no need for such a huge expense. At FundHub, we will create a draft PPM for the broker-dealer to cut the legal costs involved to a minimum. Our PPMs are tailored to the applicable federal and state laws involved in each case, and are created through an easy-to-use online interface, then reviewed by FundHub's internal compliance staff, before being available to print directly from our site. With our simple and affordable PPM generation tool, and our compliance review, broker-dealers can easily generate a near-perfect PPM for the issuer's counsel to quickly review and approve. We will even provide you with a list of securities attorneys who will review the documents and provide you with legal opinions and services at a reduced rate to finish the process.
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Reg D & JOBS Act 101
Reg D & JOBS Act 101

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