Fintech company Netcapital Inc. (Nasdaq: NCPL, NCPLW) said this week that its wholly owned subsidiary, Netcapital Securities Inc. (NSI), has been granted broker-dealer approval by the Financial Industry Regulatory Authority (FINRA).
Netcapital Gets FINRA Approval for Broker-Dealer License
The company said the licence approval is set to bolster its capacity to facilitate larger capital raises and broaden its investment offerings.
The newly gained licence enables NSI to specialise in private placements of securities and referral business.
It is designed to assist companies raising equity capital under Regulation A (Reg A) and Regulation D (Reg D), as well as foster partnerships with other broker-dealers to collaboratively syndicate deals.
“This is a major milestone for Netcapital,” said Martin Kay, CEO of Netcapital Inc. He added that the approval positions the company to expand its offerings. It also allows them to better serve clients by supporting larger capital raises.
The licence also allows Netcapital Securities to charge fees on the capital issuers raise under Reg A and Reg D, and to establish fee-sharing agreements with other broker-dealers.
The move enhances Netcapital’s ability to support its clients while potentially increasing revenue streams.
Netcapital Inc. operates a technology-driven platform that facilitates capital raising for private companies and provides private equity opportunities for investors.
With this regulatory milestone, the company reaffirms its position as a key player in the fintech sector, bridging innovation and investment in the private equity market.
