Crowdfunding regulation needed to protect investors and legitimate business
The AFM responds to reports from Trouw and De Groene Amsterdammer about SMEs that go bankrupt because they sometimes have to pay extortionate interest on crowdfunding platforms in the case of crawled loans.
“We have expressed our concerns about the lack of regulation on several occasions,” said an AFM spokeswoman. Legislation is being worked on in a European context, the regulator says.
The AFM has not given free rein to crowdfunding platforms. “We have chosen to allow them onto the market with an exemption. Then they still have to meet a number of requirements. ”For example, the directors of the platforms are checked and there are requirements for good governance and for the organization. The parties must also provide information to the regulator every six months.
MKB Financing Foundation endorses the need for regulation. ”
We also think that it will take too long,” says chairman Ronald Kleverlaan. “You don’t want this,” he responds to the findings of Trouw and De Groene Amsterdammer.
He does, however, point out that the sector, which includes not only crowdfunding but also alternative stock exchanges and issues such as factoring and flash credits, agreed a joint code of conduct a few months ago. It will start on July 1.