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Can I collect financial information from participants in Florida? What are the requirements?

Yes, you can collect financial information from participants in Florida, but you may need to comply with certain requirements depending on the type of securities offering and your role in the offering. Here are some relevant regulations:

Requirements for Florida Intrastate Crowdfunding Intermediaries [1.2]

If you are an intermediary for a Florida Intrastate Crowdfunding offering, you must take measures to reduce the risk of fraud with respect to transactions. Such measures include denying or removing an issuer’s access to the intermediary’s platform if:

  • The issuer fails to either provide the intermediary, or to potential investors through the intermediary’s platform, the disclosure statement required under Section 517.0611(7), F.S.;
  • The issuer fails to have an escrow agreement with a financial institution as required under Sections 517.0611(4)(f) and 517.0611(8), F.S., in order for the intermediary to comply with its duties under Sections 517.0611(13)(f) and (g) and 517.0611(15), F.S.;
  • The intermediary has knowledge that the issuer is disqualified from conducting an offering under Section 517.0611, F.S., pursuant to Section 517.0611(4)(a), (c), (d), or (e), F.S., or
  • The intermediary has knowledge that the issuer has made material false statements or material omissions to investors or potential investors through the intermediary’s platform.

Additionally, an intermediary shall make and preserve records related to investors, issuers, and communications that occur on or through its platform for five years, the first two years in an easily accessible place. An intermediary shall obtain evidence of residency within Florida from each investor before the purchase of a security. The intermediary shall verify the evidence of residency through an independent or governmental source. [1.2]

Net Capital and Financial Reporting Requirements for Dealers and Issuer/Dealers [1.4]

If you are a dealer or issuer/dealer, you must comply with certain net capital and financial reporting requirements. For example, you must maintain minimum net capital as required by Rule 69W-200.001, F.A.C. and file financial reports as required by Rule 69W-200.002, F.A.C. The financial reports must be audited financial statements that are examined in accordance with United States generally accepted auditing standards and prepared in conformity with generally accepted accounting principles. [1.4]

Please note that these are not exhaustive lists of all the requirements that may apply to your situation. You should consult with a legal professional to ensure that you comply with all applicable regulations.

Source(s):
Jurisdiction

Florida