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 engaged InnReg to help structure a robust compliance program that would support the launch of their innovative investment platform. Their goal was to deliver a technology-driven solution aimed at making investing accessible to mass-market, everyday users.

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.

Grifin’s unique approach required a strong compliance foundation to support its launch and future growth.

Challenges

Grifin’s innovative business model presented several challenges:

  1. Regulatory Compliance: The app’s integration between consumer spending and micro-investing needed careful analysis to align with SEC regulations and other applicable legal requirements.

  2. Consumer Protection: Given the platform’s mass-market focus, it was important to develop clear disclosures and safeguards for new investors.

  3. Technology Integration: Structuring operational processes to fit regulatory expectations while maintaining a streamlined user experience required detailed planning.

InnReg's Solution

To address Grifin’s challenges, InnReg implemented a comprehensive strategy:

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

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

  • Developed a compliance framework for the client’s business model: We developed tailored strategies to support the regulatory aspects of integrating consumer spending with investment activities, focusing on U.S. requirements.

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

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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