Doesn't iHub have RULES against unregistered IRP in their handbook re the LEGALITY of being undisclosed?
iHub considers users who make posts (both public and private) subject to Section 17(b) of the Securities Act of 1933 to be an IRP. The relevant text of Rule 17(b) (page 56) is as follows:
It shall be unlawful for any person, by the use of any means or instruments of transportation or communication in interstate commerce or by the use of the mails, to publish, give publicity to, or circulate any notice, circular, advertisement, newspaper, article, letter, investment service, or communication which, though not purporting to offer a security for sale, describes such security for a consideration received or to be received, directly or indirectly, from an issuer, underwriter, or dealer, without fully disclosing the receipt, whether past or prospective, of such consideration and the amount thereof.More information about what qualifies someone as an IRP can be found here.
FAQ's Q: I no longer do promotions but have in the past. Do I need to sign up for this? If you are required to make disclosures under Rule 17(b), then you meet iHub's requirements to become an IRP. When and whether you are required by law to disclose is something that should be discussed with your legal counsel.
Q. This is bull! I shouldn't have to pay more than anyone else because I'm creating market awareness for a company!I'm helping the people on your site by promoting this company!
You are using iHub for commercial purposes. The modest fee allows you to use the site and to make your legally required disclosures. You cannot post on iHub for purposes of fulfilling your compensated awareness campaign without being an IRP.
Q. I'm a promoter but refuse to pay the additional fees. I just won't talk about any of my stocks on iHub. No disclaimers other than the ones in the IRP pages will be allowed. If you choose to bypass the system and post about a company you are being compensated to promote, you will likely receive a long suspension at minimum.
Q. I'm an IRP but the disclaimer is not showing up in my posts. Below the box where you compose your post, there is a box that you need to check to have the disclaimer show up in that message.
Q. Yikes! I'm an IRP and forgot to check the box for my disclaimer! When I go to Edit it won't allow me to add it! I legally have to have this on the post. What now? Within in the edit period, you can add a link to your disclosure page in the content of the message. Disclosing this way should be the exception, though, not the rule.
Q. Where can I find a list of the IRPs? Here.
Q. How can I find out what companies an IRP is promoting? Go to the User's profile and click on the golden triangle, then click on View My Disclosures/Disclaimers.