EU Sets Out Safeguarding Rules For Crowdfunding Investors

By Najiyya Budaly (November 11, 2021, 1:45 PM GMT) -- Europe's markets watchdog has set out standards that companies planning to raise money through crowdfunding should follow to ensure investors are protected, as regulation on the alternative capital-raising strategy comes into force.

The European Securities and Markets Authority published draft technical standards on Wednesday for the Crowdfunding Regulation, which came into force on the same day. The regulation creates a uniform regime for small and midsized companies seeking to raise up to €5 million ($5.7 million) over 12 months via the money-raising method.

"The new rules are expected to increase the availability of this innovative form of finance, which will help companies...

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