The Finnish Ministry of Employment and the Economy and the Ministry of Finance recently published the results of a survey they conducted between 27 November and 20 December 2013 to explore the current status of crowdfunding in Finland and to obtain a broad perspective to support the policies to be adopted.With this research the Finnish Government wanted to assess the need to specify national-level regulation for equity crowdfunding and P2P lending particularly as concerns the efficient functioning of markets and investor protection.
Responses to the survey were also used as a foundation for contributions by the Ministry of Employment and the Economy and the Ministry of Finance to a public consultation on the topic of crowdfunding organised by the European Commission at the end of 2013, whose results were published in early 2014.
The results of the survey indicated that crowdfunding has potential to function as a significant promoter of citizen participation and a source of funding for business life also in Finland. The growth of crowdfunding should be promoted while at the same time focusing in the prevention of misconduct in the sector. The general conclusions of the Finnish report indicate that:
- regulation in the sector must be kept light;
- self-regulation and good practices must be developed within the sector;
- the sector requires guidelines: there is a need for instructions and education;
- the general public’s level of knowledge concerning the sector must be increased;
- the possibility of requiring authorisation or registration from operators in the sector should be considered;
- the roles of the authorities must be clarified;
- the significance of a functional secondary market in supporting the development of the sector;
- the Money Collection Act should account for the special characteristics of crowdfunding more efficiently than it does today.
To download the full report follow this link