Legal Frameworks for Equity Crowdfunding in Europe
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Transcript of Legal Frameworks for Equity Crowdfunding in Europe
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
AL
NO RECKLESS INVESTMENTS
TAG ALONGM
IFID
INFORMATION
NO INVESTMENTLIMIT
CURATE THE CROWD
RESPECT THE CROWDBE LOYAL
GET FEEDBACKPROVIDE INFORMATION
©2014 A.M. Lerro