TWIST AND TURNS OF CROWDFUNDING REGULATION

Abstract

Crowdfunding has suddenly caught the attention of financial regulators in many jurisdictions. It appears the mark crowd funding is making in the financial services industry within many jurisdictions can no longer be ignored by regulators. Regulators role is to ensure that financial markets in their jurisdictions are fair, efficient and transparent. But most importantly the regulators must protect clients and investors against unscrupulous practices. The hype around crowd funding has really made many regulators to start digging deep into this financial product or services to see exactly what lies underneath. This paper zooms in on measures put in place by some jurisdictions to try and regulate crowd funding activities.