Investment Cancellation and Funds Refund Process #
Emails:
- investment/return_funds.pug - Required by law/SEC
- investment/refund_completed.pug - Optional
flowchart TD A[User initiates Investment Cancellation] --> B(User provides reason and authorizes cancellation) B --> C(Investment Status Updated to Cancelled by investor after investment) C --> D(Cancellation request is created) D --> E(Admin reviews request) E --> F{Approve?} F -->|No| G[/Investment status is reverted/] F -->|Yes| H(Refund Process is initiated) H --> I(Refund Processing) I --> J([LAW REQUIRED EMAIL : Refund is being processed]) I --> K[Completed Refund to Original Payment Source] K --> L([EMAIL : Refund is completed])
For Reg A and D investment cancellations are less common, but allowed, would typically be governed by the terms in the subscription agreement. Refunds are possible if the investment is canceled before offer closing process started. The SEC requires clear communication and the return of funds.
The investor decides to cancel their investment. They select the “Cancel Investment” option from their dashboard or investment details page and provides a reason for the cancellation. The investor confirms their decision to cancel by authorizing the cancellation request, often through an “Request Cancellation” button. The platform records the cancellation request, update the investment status to “Cancelled by investor after investment". The administrator confirms the cancellation request. The platform updates user dashbaord appropriately.
After confirming the cancellation, the platform initiates the refund process. This can differ depending on the payment method originally used (ACH, Electronic Wallet, etc.). A bank transfer to return the funds to the investor’s original bank account is initiated. This process typically takes 1–3 business days. The required by law email notifies the investor that the funds are being processed.
The investor receives additional email confirmation once the funds have been successfully refunded.
Other cases when refund might occur: material change, offer cancellation, offer unsuccessful closing.
Our email-service has integration with the trusted delivery and marketing platform which ensures security, compliance, and deliverability. It obust encryption and regulatory compliance (FINRA), protecting sensitive financial data and minimizing the risk of phishing or email spoofing. Additionally, third-party providers handle scalability, uptime, and automation, ensuring timely communication during high traffic periods and streamlining customer notifications.
Notice: Provider Variability and Compliance Assurance
Please be advised that, depending on customer preferences, the specific providers involved in the investment and related processes, including identity verification, accreditation checks, electronic wallet provision, email communications, and other related services, may vary. However, rest assured that all such providers are carefully selected to meet the highest standards of security, compliance with applicable laws and regulations, and user experience best practices.
Each provider undergoes a rigorous vetting process to ensure they align with our commitment to safeguarding your personal and financial information. We prioritize full adherence to regulatory requirements, ensuring that your investment experience remains secure, compliant, and seamless.
Test Cases
All processes on our platform are thoroughly documented, including detailed test cases, which are especially critical whenever changes are made. Test cases ensure that every feature functions as intended, identify potential issues early, and maintain the platform’s reliability, security, and compliance for our investors.
Related Use-Cases: