# 17 CFR § 227.205: Promoter compensation

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-17-227.205

## Section

- **Citation:** 17 CFR § 227.205
- **Heading:** Promoter compensation
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** September 22, 2026
- **Source:** Publisher's official text
- **Location:** Title 17—Commodity and Securities Exchanges > CHAPTER II—SECURITIES AND EXCHANGE COMMISSION > PART 227—REGULATION CROWDFUNDING, GENERAL RULES AND REGULATIONS > Subpart B—Requirements for Issuers

## Text

(a) An issuer, or person acting on behalf of the issuer, shall be permitted to compensate or commit to compensate, directly or indirectly, any person to promote the issuer's offerings made in reliance on section 4(a)(6) of the Securities Act (15 U.S.C. 77d(a)(6)) through communication channels provided by an intermediary on the intermediary's platform, but only if the issuer or person acting on behalf of the issuer, takes reasonable steps to ensure that the person promoting the offering clearly discloses the receipt, past or prospective, of such compensation with any such communication.
Instruction to paragraph (a). The disclosure required by this paragraph is required, with each communication, for persons engaging in promotional activities on behalf of the issuer through the communication channels provided by the intermediary, regardless of whether or not the compensation they receive is specifically for the promotional activities. This includes persons hired specifically to promote the offering as well as to persons who are otherwise employed by the issuer or who undertake promotional activities on behalf of the issuer.
(b) Other than as set forth in paragraph (a) of this section, an issuer or person acting on behalf of the issuer shall not compensate or commit to compensate, directly or indirectly, any person to promote the issuer's offerings made in reliance on section 4(a)(6) of the Securities Act (15 U.S.C. 77d(a)(6)), unless such promotion is limited to notices permitted by, and in compliance with, § 227.204.

## Nearby sections

- [17 CFR § 227.100 § 227.100 Crowdfunding exemption and requirements.](https://www.frixlaw.com/law-library/statutes/ecfr-17-227.100.md)
- [17 CFR § 227.201 § 227.201 Disclosure requirements.](https://www.frixlaw.com/law-library/statutes/ecfr-17-227.201.md)
- [17 CFR § 227.202 § 227.202 Ongoing reporting requirements.](https://www.frixlaw.com/law-library/statutes/ecfr-17-227.202.md)
- [17 CFR § 227.203 § 227.203 Filing requirements and form.](https://www.frixlaw.com/law-library/statutes/ecfr-17-227.203.md)
- [17 CFR § 227.204 § 227.204 Advertising.](https://www.frixlaw.com/law-library/statutes/ecfr-17-227.204.md)
- [17 CFR § 227.205 § 227.205 Promoter compensation.](https://www.frixlaw.com/law-library/statutes/ecfr-17-227.205.md)
- [17 CFR § 227.206 § 227.206 Solicitations of interest and other communications.](https://www.frixlaw.com/law-library/statutes/ecfr-17-227.206.md)
- [17 CFR § 227.300 § 227.300 Intermediaries.](https://www.frixlaw.com/law-library/statutes/ecfr-17-227.300.md)
- [17 CFR § 227.301 § 227.301 Measures to reduce risk of fraud.](https://www.frixlaw.com/law-library/statutes/ecfr-17-227.301.md)
- [17 CFR § 227.302 § 227.302 Account opening.](https://www.frixlaw.com/law-library/statutes/ecfr-17-227.302.md)
- [17 CFR § 227.303 § 227.303 Requirements with respect to transactions.](https://www.frixlaw.com/law-library/statutes/ecfr-17-227.303.md)
- [17 CFR § 227.304 § 227.304 Completion of offerings, cancellations and reconfirmations.](https://www.frixlaw.com/law-library/statutes/ecfr-17-227.304.md)
- [17 CFR § 227.305 § 227.305 Payments to third parties.](https://www.frixlaw.com/law-library/statutes/ecfr-17-227.305.md)
- [17 CFR § 227.400 § 227.400 Registration of funding portals.](https://www.frixlaw.com/law-library/statutes/ecfr-17-227.400.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-17-227.205. Check the current official text before relying on it. Not legal advice.