Stating that the Securities and Exchange Commission’s newly allowed hedge fund and private equity ad rule “sets in motion a much easier path for shady operators and outright crooks,” Massachusetts Securities regulator William Galvin announced Monday that he’s setting up a new unit to monitor crowdfunding activity in the state.
The new unit, to be manned by securities division staff and attorneys, is dubbed the Internet Crowdfunding and Offerings Watch Department, “I-CROWD.” It will monitor not only crowdfunding websites but also advertising of private placements under Regulation D’s Rule 506.