Investment platforms regulation

Crowdfunding has been regarded as a useful tool to meet consumers’ and SMEs’ financing needs as well as investors’ need for diversified alternative investments finance and desire for a more ‘democratic’ financial system. It has also been presented as a form of ‘disintermediated’ finance, reducing the traditional chain of financial intermediation. However, crowdfunding platforms’ activities present similarities with traditional financial services, suggesting a ‘re-intermediation’ phenomenon and a (at least partial) role of crowdfunding platforms as gatekeepers. The present Chapter analyses the regulatory approaches towards crowdfunding activities in various countries/regions (EU, UK, US, Singapore and Australia), comparing the solutions adopted by each under the main areas and tools generally deployed in financial regulation (e.g. authorisation, prudential requirements, investor protection, etc.) to attain the fundamental goals of financial regulation (e.g. stability, investor protection, efficiency, etc.), highlighting similarities, differences and the level of relevant interests protected.