by: Grow VC Group
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The International Organization for Securities Commissions (IOSCO) has released a statement on online investing and its existing and potential legal frameworks, after having surveyed twenty three securities commissions around the world on the subject.

The report that contains the outcomes of the survey highlights the fact that all regulatory programs are rather young and that, despite a few similarities,they display many diversities in how risks are addressed and mitigated.

IOSCO identifies the main risks related to crowdfunding activities. After having observed all respondents’ approaches to such inherent risks, IOSCO draws attention in its statement to the following measures that some national financial authorities adopted or are planning to adopt:

  1. customizing entry, registration, or licensing requirements for funding portals;
  2. setting disclosure requirements for issuers and funding portals;
  3. limiting the services that may be provided by crowdfunding platforms;
  4. requiring investor education and/or statements signed by investors acknowledging their understanding of risks;
  5. limiting the size of the investments made by an individual in each offering and in a given timeframe; and
  6. requiring the appointment of a third party custodian to hold investor assets.

The purpose of IOSCO’s report and statement is not to propose a common international approach to the oversight or supervision of crowdfunding at this stage, but to simply raising awareness about all the risks investors may face and how these are being addressed internationally.

Read the whole article on Crowd Valley Blog.


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Grow VC Group The Grow VC Group is the world leading, global pioneer of securities crowd funding, peer to peer marketplaces, new investment models and global business development. Established in 2009, the Group has developed new investment models on six continents and continues to innovate the global market.

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This entry was posted on Wednesday, January 13th, 2016 at 2:00 pm and is filed under Business Updates. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.