Netcapital Inc. (NASDAQ:NCP), a digital private capital markets ecosystem, today announced that its wholly-owned subsidiary, Netcapital Securities Inc. (NSI), has received approval from the Financial Industry Regulatory Authority (FINRA) to become an FINRA-member broker-dealer.
Netcapital Securities Inc. is specifically approved to engage in the following types of business: private placements of securities and referral business.
The purpose of Netcapital Securities Inc. is to support companies (i.e., issuers) raising equity capital under Regulation A (“Reg A”) and/or Regulation D (“Reg D”), and to partner with other broker-dealers to collaboratively syndicate deals.
This approval allows Netcapital to support larger fundraises while potentially offering its investor base a broader range of investment opportunities.
Additionally, this approval enables Netcapital Securities Inc. to charge fees on the capital issuers raise under Reg A and Reg D, and to enter into fee sharing agreements with other broker-dealers.
“This is a major milestone for Netcapital, positioning us to expand our offerings and allowing us to better serve our clients by supporting larger capital raises,” said Martin Kay, CEO of Netcapital Inc.
