 | The Portuguese Parliament has approved at the beginning of July a legal framework for online investing. The document sets clear guidelines for the local financial market authority, Comissão do Mercado de Valores Mobiliários (CMVM), to start working on regulatory details which should be published within 60 days from the approval of the aforementioned document. |
The legal framework sets about the following rules:
Platforms
The platforms will have to register themselves with CMVM, which will be in charge of controlling all requirements it will set are respected and of monitoring portals’ activities. Furthermore the platforms shall make sure that investors have access to any relevant information concerning the offering and cannot provide advice or buy shares of any of the deals conducted on their website.
Issuers
Fundraising companies will have to make available to the platform and investors all relevant financial information about the business - as it will be soon specified by CMVM -. In addition, they are required to provide information on the offering such as the description of the activities they intend to finance with the capital collected, the amount sought and other details as set by CMVM. The law leaves space to CMVM to decide upon the maximum amount it can be raised through an equity crowdfunding campaign.
Investors
At the moment no specific limitation for investors exist, but the legal framework leaves to CMVM the task of deciding upon the cap on investment (per single offering and total annual investment) with the possibility of differentiating between retail investors and professional ones.
The approval of the law by the Parliament is the first step towards the creation of a Portuguese securities crowdfunding sector, which will start taking shape only when CMVM will release relevant rules, joining in this way many other EU Countries who have adopted specific regulations for online investing.
References
Parlamento aprova regras para o crowdfunding em Portugal. tek.sapo.pt (2015)
Platforms
The platforms will have to register themselves with CMVM, which will be in charge of controlling all requirements it will set are respected and of monitoring portals’ activities. Furthermore the platforms shall make sure that investors have access to any relevant information concerning the offering and cannot provide advice or buy shares of any of the deals conducted on their website.
Issuers
Fundraising companies will have to make available to the platform and investors all relevant financial information about the business - as it will be soon specified by CMVM -. In addition, they are required to provide information on the offering such as the description of the activities they intend to finance with the capital collected, the amount sought and other details as set by CMVM. The law leaves space to CMVM to decide upon the maximum amount it can be raised through an equity crowdfunding campaign.
Investors
At the moment no specific limitation for investors exist, but the legal framework leaves to CMVM the task of deciding upon the cap on investment (per single offering and total annual investment) with the possibility of differentiating between retail investors and professional ones.
The approval of the law by the Parliament is the first step towards the creation of a Portuguese securities crowdfunding sector, which will start taking shape only when CMVM will release relevant rules, joining in this way many other EU Countries who have adopted specific regulations for online investing.
References
Parlamento aprova regras para o crowdfunding em Portugal. tek.sapo.pt (2015)
 | 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. |
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