Federal parliament approved a modified version of the Equity Crowdfunding Bill first put forward in November 2015.
The bill ushers a new, regime for Public companies to fundraise small amounts from retail investors via approved AFSL holding intermediaries.
The key differences between this and the existing class order exemptions;
For many retail investors this will be the first time they have access to offers that have been traditionally reserved for exempt investors, affiliates or employees.
Congratulations to the minister for personally championing the bill to fruition, and we trust that further progress will be made in regards to the SME friendly version currently under review.
Lets crowdfund Equity in 2017!
Code of Conduct for Crowdfunding Platforms in the German Federation of Crowdfunding eV
The Federal Association of Crowdfunding eV is committed to the highest professional and ethical standards in the German crowdfunding industry. Professional and ethical behavior is fundamental to the success of the crowdfunding industry. The market participants depend on a trustworthy environment.
Investors, capital-seeking companies and persons as well as all other market participants are allowed to expect the members of the Federal Association Crowdfunding eV to behave to a high degree professionally, transparently and ethically. In addition, it is in the best interest of the member companies to support the development of confidence in crowdfunding, crowding and crowding in the public through appropriate behaviors.
Against this background, the Federal Association of Crowdfunding eV has developed the following Code of Conduct. The principles are designed to be applicable to all member companies, ie to both the BaFin-authorized crowdfunding platforms and other companies.
The members of the Federal Association Crowdfunding eV are of the opinion that the principles formulated in this Code of Conduct are important for both companies and private individuals. Compliance with these principles is an essential prerequisite for membership in the Federal Association of Crowdfunding eV Each of these principles applies to all members of the Federation of Crowdfunding with regard to their investors and donors, as well as with regard to companies and persons seeking capital.
1. We keep investments and donations generated through our platform separately from the cash flows of our operating activities, ie in customer accounts or similar separate structures for capital management.
2. We ensure transparency so investors or donors can receive information about their money invested or donated.
3. We create processes that ensure the secure storage of the data of our investors, donors and capital-seeking companies, persons or projects. We comply with all data protection regulations in force in Germany. This also means that access to these data is still possible when our business is discontinued.
4. We create processes that ensure investors' access to their holdings in the event that our business is terminated.
5. We agree to allow investors or donors a consideration period if they change their mind following an investment or donation.
6. We formulate our general terms and conditions and contracts for companies and individuals, investors or donors in an understandable manner and explain exactly how the investment process and transfer process works, what our rights and obligations are, what due diligence applies to us and what fees and at what time To be due.
7. We hire competent, professional and serious staff and ensure that we have the necessary systems and processes to conduct our business in a secure manner. We present our management on the website of the Federal Association Crowdfunding eV.
8. We ensure that our IT systems and business processes are secure and reliable, that they comply with the nature, scale and complexity of our business, and that they are sufficiently sound to comply with the applicable laws and regulations and this Code of Conduct.
9. We comply with the laws and regulations applicable to our sales and marketing activities and ensure that our communications are fair, comprehensible, transparent and in no way misleading. Risks and potential returns are presented in a balanced manner, while investors and donors are treated fairly.