HomeNewsIn-depth reaction to Title III rules passing
In-depth reaction to Title III rules passing

In-depth reaction to Title III rules passing

Last updated 30th Nov 2022

As the Securities and Exchange Commission’s release of the new crowdfunding rules begins to be analyzed by the investment community, Bankless Times is speaking with additional experts to get their thoughts on what those rules mean for the industry.

NEW YORK, NY. – Over the weekend, Bankless Times spoke with Meg Zwick and Blaine McLaughlin.

Ms. Zwick is the Senior Vice President of Alternative Custody Services at Millennium Trust Company. Established in 2000, Millennium Trust Company provides alternative custody sources to institutions, advisors and individuals. They currently have more than $15 billion in assets under custody.

Mr. McLaughlin is the Head of VIA Folio, a marketplace offering frictionless investment opportunities in many types of private placements. Those opportunities can be reviewed and managed alongside an investor’s stocks, bonds and ETFs in a Folio Investing brokerage account.

Intermediary vetting responsibility

Ms. Zwick:

“We recognize that platforms and portals will need the ability to screen in order to manage risks, in a similar way that existing private placement platforms do.

[caption id="attachment_23853" align="alignleft" width="785"]
Meg Zwick
Blaine McLaughlin[/caption]

The $1M limit will enable many small companies to get started with their fundraising.

For some it may be enough money, but for many others the ability to leverage the relatively new Reg D Rule 506c and Reg A Tier 1 and Tier 2 offering registration exemptions to raise significantly more money from accredited and non-accredited investors will also be very important as they grow.

Platforms compensated in equity

Mr. McLaughlin:

Folio is open to the concept of platforms, including ours, being compensated with equity instead of cash, where it makes sense for both parties and it is good to see regulations enabling such market driven decision making.

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