Fintech companies face investment company status challenges

Abstract

Purpose

To inform readers of the challenges that fintech companies can have regarding investment company status, using two recent examples.

Design/methodology/approach

The article provides an introduction to the subject, discusses two examples of fintech companies that had investment company status challenges, and provides concluding remarks regarding each.

Findings

Navigating investment company status can be challenging for fintech companies, and in some cases, as was the case with the two companies discussed in the article, it may be necessary, or at least advisable, to seek to obtain an order from the SEC.

Practical implications

It is important for fintech companies to evaluate their investment company status in early stages and continue to monitor their status thereafter, particularly if they are considering a public offering.

Originality/value

Technical guidance from experienced investment company status lawyers.

Citation

Cruz, L.S. and Monaco, S.M. (2021), "Fintech companies face investment company status challenges", Journal of Investment Compliance, Vol. 22 No. 3, pp. 236-242. https://doi.org/10.1108/JOIC-04-2021-0016