Identifying market and regulatory obstacles to the cross-border development of crowdfunding in the EU
This 10-months project will support the European Commission in monitoring the development of the sector and the effectiveness and degree of convergence of national regulatory frameworks, as well as to promote convergence, sharing of best practice and keep developments under review, by assessing the development of cross-border business and the investor protection aspects. This assessment will be vital input for the mid-term review of the Capital Market Union.
For doing this, the ECN will establish close working relations with members and non-members with experience in cross-border crowdfunding in order to form a task force that will share experience within a workshop with peers, stakeholders and the EC. The ECN will also launch an open survey to all EU securities and lending crowdfunding platforms with will deliver vital input for the European Commission’s review off the Capital Market Union and which will be followed up by individual interviews with interested parties.
The project will focus solely on crowdfunding models that entail a financial return, notably:
- investment-based crowdfunding (where companies issue equity or debt instruments to crowd-investors through a platform) and
- lending-based crowdfunding (where companies or individuals seek to obtain funds from the public through platforms in the form of a loan agreement)
- Identification and evaluation of cross-border barriers encountered by crowdfunding platforms
- Identification and evaluation of the disclosures and safeguards applicable to the users of services of platforms
- Identification of case studies cross-border platforms, best practices, potential and innovative business models
- Suggestion of recommendations to the European Commission
Duration 01 January 2017 to 31 October 2017
Project funded by DG FISMA
Osborne Clarke, Germany
Dr. Nikolaos Daskalakis, University of Brighton, United Kingdom