Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/169411
Authors: 
Tröger, Tobias H.
Year of Publication: 
2017
Series/Report no.: 
SAFE Working Paper Series 184
Abstract: 
Crowdfunding is a buzzword that signifies a sub-set in the new forms of finance facilitated by advances in information technology usually categorized as fintech. Concerns for financial stability, investor and consumer protection, or the prevention of money laundering or funding of terrorism hinge incrementally on including the new techniques to initiate financing relationships adequately in the regulatory framework. This paper analyzes the German regulation of crowdinvesting and finds that it does not fully live up to the regulatory challenges posed by this novel form of digitized matching of supply and demand on capital markets. It should better reflect the key importance of crowdinvesting platforms, which may become critical providers of market infrastructure in the not too distant future. Moreover, platforms can play an important role in investor protection that cannot be performed by traditional disclosure regimes geared towards more seasoned issuers. Against this background, the creation of an exemption from the traditional prospectus regime seems to be a plausible policy choice. However, it needs to be complemented by an adequate regulatory stimulation of platforms' role as gatekeepers.
Subjects: 
crowdinvesting
crowdfunding
fintech
financial stability
market infrastructure
investor protection
JEL: 
G23
G28
G38
K22
K23
Document Type: 
Working Paper

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