Offer is being successfully Closed #
Once the offer closes successfully (i.e., reaching its target), funds are transferred to the issuer. The Securities and Exchange Commission (SEC) requires platforms to file closing updates and notify investors of the successful closure. Investment is considered final after this point, and funds are non-refundable unless fraud or misrepresentation occurred.
Regulatory Compliance:
- Reg A+ and Reg D require formal closing notices and investor communications ( More on SEC Reg A).
- Funds become non-refundable upon offer closure unless fraud or misrepresentation is proven.
Fund Disbursement & Compliance #
The platform verifies that the offer has reached 100% subscription, all investment agreements are signed, and all funds have been paid. The offer status is changed to Legally Closed. It notifies all investors via email, confirming that the offer is legally closed and outlining the next steps. The Admin marks the offer as Successfully Closed.
Regulatory Compliance:
- SEC Rule 15c2-4 ensures that funds held in escrow are released only upon final offer closure ( More on SEC Rule 15c2-4).
- Platforms must ensure all investor agreements are signed before disbursing funds to the issuer.
- Reg CF and Reg A+ require updates on dividend payments and future obligations.
Investor Notification & Recordkeeping #
The platform notifies investors with a legally required closing confirmation email, summarizing the completed offer and informing them about the dividend payment period.
Regulatory Compliance:
- FINRA Rule 4511 requires maintaining records of all closing transactions and investor communications ( More on FINRA Rule 4511).
- FINRA Rule 3110 mandates archiving and supervision of investor notifications ( More on FINRA Rule 3110).
Email Notifications & Security Compliance #
Our email-service integrates with a trusted delivery and marketing platform, ensuring security, compliance, and deliverability. It includes robust encryption and regulatory compliance with the Financial Industry Regulatory Authority (FINRA), protecting sensitive financial data and minimizing phishing or email spoofing risks. Additionally, third-party providers handle scalability, uptime, and automation, ensuring timely communication during high-traffic periods and streamlining investor notifications.
By ensuring compliance with SEC, FINRA, and investor protection regulations, the platform guarantees secure offer closure, transparent fund disbursement, and proper investor communication.
Emails #
- investment/legally_closed.pug - required by law/SEC
- investment/successfully_closed.pug - required by law/SEC
flowchart TD A[Full Offer Subscription Verification] --> B(Agreements Validation) B --> C(Payments Validation) C --> D(Status Change to Legally Closed) D --> E([LAW REQUIRED EMAIL : Closing Confirmation]) D --> F[Change Offer Status to Successfully Closed] F --> G([LAW REQUIRED EMAIL : Closing Summary]) F --> H{{Dividends Period Initializes}}
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:
- Regulation D Solution
- Regulation A Software
- Broker Dealer Platform
- Secondary Market For Alternative Assets
- Regulation CF Crowdfunding
Read more on the subject #
- Investment Process Compliance
- Wallet Creation Compliance
- Electronic Payments Compliance
- Funds Transfer Compliance
- Bank Account Linking Compliance
- Investment Cancellation Compliance
- Offer Cancellation Compliance
- Offer Early Closing Compliance
- Offer Material Change Compliance
- UnSuccessful Offer Closing Compliance