When a company plans on going public on one of the main trading exchanges such as the NYSE or NASDAQ, there are several SEC (Securities and Exchange Commission) regulations they must comply with as they raise capital through crowdfunding. Learn what a Reg CF (Regulation Crowdfunding) transfer agent is and how they can help with this process below.
What a Reg CF Transfer Agent Does
A Reg CF transfer agent is a third-party service provider that maintains the records of securities ownership and the transactions for companies offering securities through crowdfunding platforms. This agent will record transactions, issue and cancel certificates, process mailings for investors, and handle various investor problems such as reissuing stolen or lost certificates.
Why Is Such an Agent Needed
This type of agent is needed for Regulation Crowdfunding because this provider is responsible for keeping track of the securities that are issued and the identity of the holders of these securities. Regulation Crowdfunding works through businesses enabling investors in their companies to earn returns through either investment income or through extra dividends. This type of capital was made possible for businesses through the 2016 JOBS act.
This type of funding is a viable way for start-up and early-stage businesses and companies to add more capital to their balance sheets in an effort to establish and maintain their businesses for the long term by offering people a chance to invest in them through Regulation Crowdfunding. In order for Regulation Crowdfunding to legally take place, an SEC-registered intermediary that is either a funding portal or broker-dealer (i.e. agent) must be used.
website provides Reg CF transfer agent and other transfer agent and issuer compliance services to public companies and privately-held companies. Learn more about the services we can provide your company at website.
