Practices for regulating investment and lending-based crowndfunding

Practices for regulating investment and lending-based crowndfunding

Practices for regulating investment and lending-based crowndfunding

The FINANCIAL -- EBRD and Clifford Chance have produced a “Report on best practices for regulating investment-based and lending-based crowdfunding”. The report analysis the current regulatory framework for lending-based and investment-based crowdfunding platforms in Austria, the Dubai International Finance Centre (DIFC), France, Germany, the UK and the U.S.

This selection of countries provides a broad range of geographies, degrees of market maturity and approaches to regulating crowdfunding.

The report looked at the type of authorisations required for the operation of crowdfunding platforms; capital and liquidity requirements; know-your-customer and anti-money-laundering checks; restrictions on the size of the loan and investable amount; consumer protection measures, including investor disclosures; risk warnings; as well as due diligence and pre-funding checks.