← Broker database 2026-03-26
Fundit Inc. Expelled from FINRA for Failure to Provide Required Regulatory Information
According to FINRA, Fundit, Inc. (Funding Portal Org ID #304126) of Fairfield, New Jersey, was expelled from FINRA membership pursuant to FINRA Rule 9552 for failure to provide information or keep information current as required.
The expulsion became effective on March 26, 2026, under FINRA Case #2025083795301. Fundit operated as a funding portal, which is a type of intermediary specifically permitted under the JOBS Act to facilitate securities-based crowdfunding transactions. Funding portals are required to register with FINRA and maintain compliance with applicable FINRA rules governing their registration, disclosure, and information requirements.
FINRA Rule 9552 provides FINRA with a streamlined mechanism to suspend or expel members and associated persons who fail to comply with FINRA's requests for information or who fail to keep their regulatory registrations and disclosures current. These requirements are not administrative formalities — they are the foundation of FINRA's ability to monitor the firms and individuals it regulates. Without current and accurate information about member firms, FINRA cannot effectively protect investors or maintain the integrity of the markets it oversees.
Securities-based crowdfunding has become an increasingly significant means by which early-stage companies raise capital from retail investors. Investors who participate in crowdfunding offerings through funding portals may invest smaller amounts than accredited investors in traditional private placements, but they take on similar risks including the risk of total loss of their investment. The regulatory oversight of funding portals provides a layer of investor protection in this space.
Expulsion from FINRA membership means that Fundit, Inc. may no longer operate as a registered funding portal or conduct any activities requiring FINRA membership. Investors who have accounts or outstanding investments through Fundit should contact FINRA's investor assistance line or their state securities regulator for guidance on the status of their accounts.