ADMINISTRATIVE PROCEEDING
File No. 3-21571

August 22, 2023 – The Securities and Exchange Commission today announced settled charges against Washington, D.C.-based investment adviser Fundrise Advisors, LLC arising from the firm’s solicitation arrangements with online content creators.

According to the SEC’s order, from February 2016 through December 2021, Fundrise made cash payments to over 200 social media influencers and publishers of online newsletters to solicit clients for Fundrise. The order finds that Fundrise did not require the solicitors to provide clients with certain disclosures required by the rules governing cash solicitation payments in effect at that time: specifically, Fundrise’s brochure and a separate written disclosure document describing the solicitor’s relationship with Fundrise and the terms of the compensation agreement.

Fundrise consented to the entry of the SEC’s order finding that the firm willfully violated the compliance and former cash solicitation provisions of Section 206(4) of the Investment Advisers Act of 1940 and Rules 206(4)-3 and 206(4)-7 thereunder. Without admitting or denying the findings, Fundrise agreed to a cease-and-desist order, a censure, and a $250,000 civil penalty to settle the charges.

The SEC’s investigation was conducted by Christine R. O’Neil and Matthew B. Homberger of the Philadelphia Regional Office and supervised by Brendan P. McGlynn and Andrew Dean of the Asset Management Unit. The SEC’s examination that led to the investigation was conducted by Eric A. Elefante, David A. Spencer, Cormac Logue, Andrea Muller, Margaret Sprock, and Brian Carroll.