Grifin's Compliance Foundations Supported by InnReg

Grifin Logo
Grifin Logo
Grifin Logo

Grifin is a fintech company that aims to integrate investing into everyday consumer activities. 

The company provides an app that allows users to invest in fractional shares of companies where they make purchases. For instance, if a user buys coffee at Starbucks, Grifin's app automatically invests a small amount in Starbucks stock. This micro-investing approach is designed to make investing more accessible and relatable, encouraging users to effortlessly build a diversified portfolio as part of their routine spending.

Founded in 2017, Grifin is headquartered in New York. The company focuses on leveraging the synergy between consumer spending and investing, aiming to simplify the process of entering the stock market for everyday users.

Regulatory Compliace for RIA
Regulatory Compliace for RIA
Regulatory Compliace for RIA

Objective

Grifin requested InnReg’s guidance on how to identify and address potential regulatory compliance issues related to targeting international users.

The client also wanted to identify the best vendors to support the international launch of an innovative investment program and product in a regulated environment.

Background

The client believes every single person would benefit from an investment approach that includes small, daily contributions. 

However, decades of experience as investment advisors have taught them this level of discipline is rare, even with seasoned investors. Grifin’s platform solves this problem by rounding up a client’s credit and debit card purchases to the next dollar and then automatically depositing this “small change” into a passively managed investment account.

Challenges

Grifin’s goal of targeting international users presented several challenges:

  1. Regulatory Compliance: Working with varying regulatory requirements across different countries was a significant hurdle. Each jurisdiction has its own set of rules and regulations governing investment activities. As a result, navigating these complexities required thorough analysis and understanding.

  2. Data Privacy and Protection: Different countries have diverse data privacy laws, such as GDPR in Europe, which necessitated stringent measures to protect user data and follow international standards.

  3. Operational Scalability: Managing and supporting a growing international client base required scalable operational processes and systems. This included finding vendors capable of providing services in multiple regions while adhering to local regulations.

InnReg's Solution

To address Grifin’s challenges in targeting international users, InnReg implemented a comprehensive and multi-faceted strategy:

  • Conducted a comprehensive gap analysis: We performed an in-depth assessment to identify any potential compliance gaps in Grifin's existing framework, preparing for international expansion.

  • Aligned with SEC requirements: Our team implemented the compliance program in accordance with SEC requirements for a Registered Investment Advisor.

  • Addressed specific regulatory requirements: We developed tailored compliance strategies to navigate the unique regulatory landscapes of the targeted international markets, facilitating Grifin's operations to meet local laws.

  • Sourced and introduced regulated vendors: To effectively support Grifin's international clients, we identified and onboarded reputable vendors with proven capabilities in managing compliance and operational needs across multiple regions.

Client Results

Grifin successfully launched its platform in 2016 on a strong compliance foundation.

Shortly after the launch, they secured their first round of VC seed funding, demonstrating investor confidence in their innovative approach and robust compliance framework.

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