3 Colo. Code Regs. § 704-1-51-3.29

Current through Register Vol. 47, No. 22, November 25, 2024

Section 3 CCR 704-1-51-3.29 - Crowdfunding - On-line Intermediary Prohibited Activities

A. An on-line intermediary shall not:

1. Offer investment advice or recommendations absent licensure and residency as stated in section 11-31-308.5(3)(b)(I) or (II);

2. Receive a financial interest in an issuer as compensation for services provided to or on behalf of an issuer unless disclosed on Form CF-2; or

3. Hold, manage, possess, or otherwise handle purchaser funds or securities.

B. An on-line intermediary that does nothing more than collect information regarding the purchase of securities pursuant to the Colorado Crowdfunding Act and provides a link to transmit funds to the escrow agent is not conducting any activity prohibited by Rule 51-3.29(A).

C. The fee charged by an online intermediary may be a variable amount based upon the number of investors in an offering.

3 CCR 704-1-51-3.29

38 CR 01, January 10, 2015, effective 1/30/2015

38 CR 08, April 25, 2015, effective 6/1/2015

38 CR 18, September 25, 2015, effective 10/15/2015

39 CR 01, January 10, 2016, effective 1/30/2016

40 CR 01, January 10, 2017, effective 1/30/2017

40 CR 12, June 25, 2017, effective 7/15/2017

41 CR 13, July 10, 2018, effective 7/31/2018

43 CR 05, March 10, 2020, effective 3/30/2020

46 CR 05, March 10, 2023, effective 3/30/2023