LEGAL FRAMEWORKSFOR EQUITY

CROWDFUNDINGIN EUROPE

ALESSANDRO M. LERRO

WWW.LERRO.ITCOPENHAGEN 2014

THE AMERICAN POINT OF VIEW

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POINTS OF VIEWTHE EUROPEAN POINT OF VIEW

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INVESTORS

TOWARDUNIFORM

REGULATIONS

“DEVELOPMENT OF A SINGLE RULE BOOK”

integrity

transparency

efficiencyorderly functioning

investor protection

equal conditions ofcompetition

REGULATORYBODIES

National Financial Authoritiesregulating financial markets

American JOBS ActTIT. 2: ACCREDITED INVESTORS:IMPLEMENTEDTIT. 3: RETAIL INVESTORS: WAITING FOR SEC REGULATION

©2013 A.M. Lerro

SINCE JUNE 2013, CONSOB AUTHORIZESAND RULES EQUITY PLATFORMS

©2014 A.M. Lerro

NEW RULES SINCE April 1°, 2014

©2013 A.M. Lerro

DECREE N. 2014-1053SEPT. 16, 2014EFFECTIVE OCT. 1, 2014

INTEG

RIT

Y

PROFESSIONALISM

MINIMUMCAPITAL

BROKER-DEALERS

DU

AL

SYSTEM

MANAGEMENT

EQUITYPLATFO

RMLICENSED

©2014 A.M. Lerro

ORDEREXECUTION

- Order execution through Broker-Dealers- MIFID- Money in escrow- Threshold Pledge System (all or nothing)- Kind of contract (digital, written,…)

HOW TO: A - PROTECT THE INVESTORB - REDUCE COSTSC - OBTAIN EFFICIENCY

TRANS-NATIONAL INVESTMENTS©2014 A.M. Lerro

U.S.A. REGULATIONS ARE VERY RESTRICTIVE. WHAT HAPPENS WITH NON U.S. INVESTORS IN U.S.A.? AREAMERICAN INDIVIDUALS ALLOWED TO INVEST ABROAD ?

©2014 A.M. Lerro

E.U. BROKER DEALERS HAVING E.U. PASSPORT MAYOPERATE THROUGHOUT THE E.U..

WHAT HAPPEN WITH NON E.U. INVESTORS ?

©2014 A.M. Lerro

ASIA IS JUST STARTING TO DEAL WITH CROWD -INVESTMENT

©2014 A.M. Lerro

INFORMATIONMARKETING

ADVERTISING

What can be toldWhat must be told

Minimum informationSpot on the risks

Regulation of advertisingInvestors’ education

MAY WE USE SOCIAL MEDIAFOR ADVERTISINGINVESTMENT OPPORTUNITIES ?

REWARD-BASED PROFILESAS INCENTIVES

DISCOUNTSOPTIONSPERKSVIP PROFILES

ENGAGE

THE CROWD!

©2014 A.M. Lerro

EQUITYLIMIT

from 1.000.000 €

to

5.000.000 €

INVESTMENT LIMIT PER PERSON

?

IT’S NOT GAMBLINGITALY:

SCRATCH CARDS: € 10,2BLOTTO: € 6,8 B

Is the PERSONAL INVESTMENT LIMIT a right protection for the investor

What about checking the investor’sPROCLIVITY TO RISKY INVESTMENTS (i.e. MIFID)

?

?

RISKS

FAILURELIQUIDITY

FRAUD

TARGETCOMPANIES

SECONDARY MARKET

©2013 A.M. Lerro

EDUCATION

WIT

H D

RAW

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NO RECKLESS INVESTMENTS

TAG ALONGM

IFID

INFORMATION

NO INVESTMENTLIMIT

CURATE THE CROWD

RESPECT THE CROWDBE LOYAL

GET FEEDBACKPROVIDE INFORMATION

©2014 A.M. Lerro

WWW.LERRO.IT ROME

Alessandro M. Lerro alessandrolerroalessandro@lerro.it

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