Equity Crowdfunding Service Providers (CSPs) Needed to Support the Growing Number of Texas Crowdfunding Portals (TCPs) and Texas Crowdfunding Issuers (TCIs)

Join the Texas Crowdfunding Network of securities attorneys, certified financial advisors, securities sales professionals, investment advisors, escrow agents, certified public accounts for Texas issuers

 By Robert Hoskins

Dallas, Texas – Front Page PR announced that the firm is seeking Equity Crowdfunding Service Providers to partner with in order to serve the growing number of Texas Equity Crowdfunding Portals and their Private Placement Memorandum (PPM) Issuers.

The firm is seeking to build an in-depth Texas Crowdfunding Network of securities lawyers, certified financial advisors, brokers, registered representatives, securities sales professionals, investment advisors, banking escrow agents and many other types of ancillary crowdfunding service providers that are authorized to operate within the guidelines of the Texas Intrastate Crowdfunding Exemption Rules.  Click here to join. 

Texas Crowdfunding Portals, Issuers and Service Providers

“Per the Texas Intrastate Crowdfunding Exemption Rules, the top equity crowdfunding sites serving Texas are not allowed to provide any type of guidance or consulting services to their private placement issuers,” said Robert Hoskins, Front Page PR’s Director of Crowdfunding. “These service providers will be needed to help is setup corporate structures, write PPMs, select the most appropriate offering structures, establish accurate offering valuations, set up escrow accounts at Texas banks and ensure that offerings meet strict Texas and SEC securities laws.”

The goal of the Texas Crowdfunding Network is to build the beginning foundation for the brand new Texas crowdfunding industry. As with any new industry aligning the fragmented players and putting them into streamlined business directory where all the players can find each other is critical. This will allow TCI’s to find third-party CSPs that will help them put together their PPMs prior to registering their offering with a leading TCP.

The majority of TCPs are still in the process of filling out their Texas State Securities Board Registration forms. Once filed it will still take several weeks to be approved by the state. In the mean time portals are actively recruiting both accredited and unaccredited investors as well as PPM issuers.

Due to the fact that PPM issuers will need help putting together their financial paperwork and the legal rules that prevent portals for giving any guidance, there is a real need for a database of marketing, legal, securities, investment, investor relations, financial planners, document preparation and banking escrow professionals that issuers can turn to get their paperwork in order.

Financial Industry Regulatory Authority (FINRA)

To give newcomers some insight into the securities and investment industry, here are some FINRA definitions of the various players and their typical roles in the fundraising and investment process:

Brokers:

• What they are:  While many people use the word broker generically to describe someone who handles stock transactions, the legal definition is somewhat different—and worth knowing. A broker-dealer is a person or company that is in the business of buying and selling securities—stocks, bonds, mutual funds, and certain other investment products—on behalf of its customers (as broker), for its own account (as dealer), or both. Individuals who work for broker-dealers—the sales personnel whom most people call brokers – are technically known as registered representatives.

• What they offer:  Broker-dealers vary widely in the types of services they offer, falling generally into two categories—full-service and discount brokerage firms. Full-service firms typically charge more for each transaction, but they tend to have large research operations that representatives can tap into when making recommendations, can handle nearly any kind of financial transaction you want to make, and may offer investment planning or other services.Discount broker-dealer firms are usually cheaper, but you may have to research potential investments on your own—though the broker-dealer Web sites may have a lot of information you can use.Registered representatives are primarily securities salespeople and may also go by such generic titles as financial consultant, financial adviser, or investment consultant. The products they can sell you depend on the licenses they hold.For example, a representative who has passed the Series 6 exam can sell only mutual funds, variable annuities, and similar products, while the holder of a Series 7 license can sell a broader array of securities. When a registered representative suggests that you buy or sell a particular security, he or she must have reason to believe that the recommendation is suitable for you based on a host of factors, including your income, portfolio, and overall financial situation, your tolerance for risk, and your stated investment objectives.

Investment Advisers:

• What they are:  An investment adviser is an individual or company who is paid for providing advice about securities to their clients. Although the terms sound similar, investment advisers are not the same as financial advisers and should not be confused. The term financial adviser is a generic term that usually refers to a broker (or, to use the technical term, a registered representative).By contrast, the term investment adviser is a legal term that refers to an individual or company that is registered as such with either the Securities and Exchange Commission or a state securities regulator. Common names for investment advisers include asset managers, investment counselors, investment managers, portfolio managers, and wealth managers. Investment adviser representatives are individuals who work for and give advice on behalf of registered investment advisers.
  

• What they offer:  In addition to providing individually tailored investment advice, some investment advisers manage investment portfolios. Others may offer financial planning services or, if they are properly licensed, brokerage services (such as buying or selling stock or bonds)—or some combination of all these services.

Accountants:

• What they are:  Accountants are trained to provide professional assistance to individuals and companies in areas including tax and financial planning, tax reporting, auditing, and management consulting.

• What they offer:  A CPA can help you consider the tax implications of financial decisions you make and assist with other tax-related issues, such as preparing annual tax returns. Some CPAs are also certified by the AICPA as Personal Financial Specialists (PFSs), which means they have met AICPA’s education requirements for providing financial planning services, including assessing your overall financial situation, developing a budget, setting goals for saving and investing, and developing a plan for monitoring your progress and reaching your goals.

Lawyers:

• What they are:  A lawyer is licensed to give legal advice to clients. Lawyers are trained to tell you about the legal impact one financial planning or investment decision might have on another—such as the tax implications of setting up a certain type of trust for your estate.

• What they offer:  As with other professionals, the range of services lawyers can provide will vary greatly from individual to individual. For example, if one of your financial goals is leaving your assets to particular people or organizations, you will want to work with a lawyer who specializes in estate planning.

Financial Planners:

• What they are:  Financial planners can come from a variety of backgrounds and offer a variety of services. They could be brokers or investment advisers, insurance agents or practicing accountants—or they have no financial credentials at all. Some will examine your entire financial picture and help you develop a detailed plan for achieving your financial goals. Others, however, will recommend only the products they sell, which may give you a limited range of choices.

• What they offer:  The breadth and depth of services a financial planner offers will vary from provider to provider. Some create comprehensive plans that delve into every aspect of your financial life, including savings, investments, insurance, college savings, retirement, taxes and estate planning. Others have a more limited focus, such as insurance or securities. Some only prepare plans, while others also sell investments, insurance, or other products. If they sell products, their recommendations typically will correspond with the products or services they sell.For example, an insurance agent will tell you about insurance products (such as life insurance and annuities) but likely won’t discuss other investment choices (such as stocks, bonds or mutual funds). You’ll want to make certain you fully understand which areas of your financial life a particular planner can—and cannot—help with before you hire that person.

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Contact:
Robert Hoskins
Front Page PR
(512) 627-6622
@Crowdfunding_PR
@FrontPage_PR

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