The crowdfunding scene in Europe is evolving fast. This year France, Spain and the UK adopted regulations for securities crowdfunding, while the European Commission officially announced its support to crowdfunding, as a valid financial source, able to help fuel Europe’s sustainable growth. In Finland, like in Sweden, the crowdfunding scene has been flourishing and active for a few years now, with more and more actors getting involved.
At the beginning of July the Finnish Financial Supervisory Authority (FIN-FSA) published on its website the guidelines for securities crowdfunding in the country, which until then has been working in different ways under to the existing legal framework.
At the beginning of July the Finnish Financial Supervisory Authority (FIN-FSA) published on its website the guidelines for securities crowdfunding in the country, which until then has been working in different ways under to the existing legal framework.
The guidelines clear all doubts on how securities crowdfunding (i.e. equity and bonds) should be legally considered.
In particular, FIN-FSA distinguishes between:
The guidelines published by FIN-FSA on crowdfunding represent a further step for the Finnish crowdfunding, which is now officially recognized by the local financial authority. Hopefully the guidelines will bring more clarity and increase the transparency in this young market, fostering even more the growth of the Finnish crowdfunding market.
References
Finnish Financial Supervisory Authority. http://www.finanssivalvonta.fi/en/Authorisations/crowdfunding/Pages/Default.aspx
Image credit to: Kari Söderholm
In particular, FIN-FSA distinguishes between:
- loan-based crowdfunding which does not require any specific regulation and it is not subject to supervision by FIN-FSA.
- equity crowdfunding which instead requires an authorisation for those portals that conduct one or more of the following activities: 1) “Bring together parties to a business transaction related to a financial instrument in the manner that enables execution of a transaction between these parties”; 2)Give advice on investments; 3)“offer an issuer of a financial instrument a service for the purpose of acquiring investors”.
The guidelines published by FIN-FSA on crowdfunding represent a further step for the Finnish crowdfunding, which is now officially recognized by the local financial authority. Hopefully the guidelines will bring more clarity and increase the transparency in this young market, fostering even more the growth of the Finnish crowdfunding market.
References
Finnish Financial Supervisory Authority. http://www.finanssivalvonta.fi/en/Authorisations/crowdfunding/Pages/Default.aspx
Image credit to: Kari Söderholm
About the author - Irene Tordera
Born and raised in Milan, Italy, Irene is an International Business graduate, with a strong interest for innovative ideas that can simplify our lives.
During her studies, she co-founded an online community for sportspeople and worked in marketing positions at Ogilvy & Mather Advertising and at the European Business Angel Network, in Brussels. She is a passionate blogger about crowdfunding and the startup ecosystem.
Born and raised in Milan, Italy, Irene is an International Business graduate, with a strong interest for innovative ideas that can simplify our lives.
During her studies, she co-founded an online community for sportspeople and worked in marketing positions at Ogilvy & Mather Advertising and at the European Business Angel Network, in Brussels. She is a passionate blogger about crowdfunding and the startup ecosystem.