Crafting a Compliance Strategy for a Brazilian Investment Platform
InnReg’s client, a fintech company based in San Francisco (US), aimed to create a platform for Brazilian investors to access international investments through both stock and cryptocurrency trading.
The journey into the US market with this dual-service platform brought many compliance challenges.
Background
The client reached out to InnReg in its early stages with a vision to be established as a US broker-dealer, and offer a cryptocurrency trading platform.
Their target market was primarily Brazilian investors seeking a low-cost, accessible route to international investments. Combining stock and crypto trading in one app led to complex regulatory challenges that required InnReg’s expertise.
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Challenges
The client faced the following challenges:
Securing regulatory approvals for both stock and cryptocurrency trading.
Structuring separate business entities for each service while maintaining a unified user experience.
Compliant advertising to Brazilian audiences in accordance with FINRA’s marketing guidelines.
InnReg's Solution
The InnReg experts outlined a comprehensive strategy to address these challenges:
Regulatory Navigation:
InnReg assisted in obtaining the necessary approvals for launching both trading services.Business Structuring:
To ensure compliance while preserving a seamless user experience, InnReg helped structure separate entities for the stock and crypto products.Marketing Compliance:
InnReg consultants engaged in thorough reviews of advertising materials from the client, educating their marketing team on FINRA’s guidelines.
Additionally, InnReg also assisted the client with the process of becoming a Registered Investment Advisor (RIA). This involved gathering the necessary documentation, handling meetings with regulators, and applying required platform modifications.
Client Results
With InnReg’s assistance, the client successfully launched their platform, adhering to regulatory standards.
The engagement also paved the way for the client to transition to a new brand under new management.
