Investment Cancellation and Refund Process #

For Regulation A ( Reg A) and Regulation D ( Reg D) investments, cancellations are less common but allowed. They are typically governed by the Subscription Agreement and SEC regulations on refund procedures.

Refunds are possible only if the investment is canceled before the offer closing process begins. The Securities and Exchange Commission (SEC) requires clear communication and the return of funds ( SEC Rule 15c2-4).

Cancellation Process Compliance #

The investor initiates the cancellation process by selecting the “Cancel Investment” option from their dashboard or investment details page. They must provide a reason for the cancellation and confirm their decision by clicking the “Request Cancellation” button. The platform records the cancellation request and updates the investment status to Cancelled by investor after investment. The administrator reviews and confirms the request, and the platform updates the user dashboard accordingly.

Regulatory Compliance:

The Subscription Agreement defines cancellation terms, and investors should review it before committing.
SEC requires clear communication of investment cancellation policies ( SEC Rule 10b-10).

Refund Processing Compliance #

Once the cancellation is confirmed, the platform initiates the refund process, depending on the original payment method (ACH, Electronic Wallet, etc.). A bank transfer to return the funds to the investor’s original bank account is initiated, typically taking 1–3 business days. The required by law email notifies the investor that the funds are being processed.

Regulatory Compliance:

Refunds must follow SEC and banking regulations—some refunds may take longer than 1-3 days depending on the financial institution.
Under Reg A, refunds must be processed within 10 business days if the offering is unsuccessful.
Timely notifications are required—investors must receive an email confirming refund processing and completion.

Other Cases Where Refunds May Occur #

Refunds may also be triggered by:

Material change: Investors must be notified of any material change to the offering, and they must either reconfirm their investment or receive a refund.
Offer cancellation: If the issuer withdraws the offer, all funds must be returned.
Unsuccessful offering: If the minimum funding goal is not met, all investor funds must be refunded in compliance with SEC rules.

Email Notifications & Security Compliance #

Once the refund is processed, the investor receives an additional email confirmation verifying that the funds have been successfully refunded. Our email-service integrates with a trusted delivery and marketing platform to ensure security, compliance, and deliverability. It includes robust encryption and regulatory compliance with FINRA and SEC standards, protecting sensitive financial data and minimizing the risk of phishing or email spoofing.

By aligning with SEC, FINRA, and banking regulations, the platform ensures investor protection, transparent refund handling, and secure financial transactions.

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])

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: