18 NCAC 06A .2034         ADMINISTRATOR DENIAL OR REVOCATION OF FUNDING PORTAL REGISTRATION

The Administrator may deny or revoke registration of a funding portal if the Administrator determines that:

(1)           the funding portal has not complied with the rules in this Section;

(2)           the funding portal has not instituted procedures to ensure the necessary due diligence occurs;

(3)           the funding portal has not instituted procedures to protect investors;

(4)           the funding portal has prematurely posted an offering before receiving notice of effective registration from the Administrator;

(5)           the factors in Rule .2033 of this Section individually or considered as a whole make the funding portal unnecessarily risky for the issuer or the investor; or

(6)           one of the grounds for action in G.S.78A-39 applies to the funding portal.

History Note:        Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a);

Eff. April 1, 2017.