French regulators clarify crowdfunding rules

Source: AMF

Crowdfunding is a new way of having projects financed by the public. This mechanism is designed to raise funds - usually in small amounts - from a broad public in order to finance a creative project (music, publication, film, etc.) or a business venture.

Crowdfunding transactions are most commonly conducted online. Crowdfunding operations may support local initiatives or projects that stand for certain values. They differ from traditional funding methods in that they often involve a strong emotional dimension.

In France, crowdfunding, which is used to help finance SMEs and very small businesses, does not have a legal definition.

Given the growth of crowdfunding in France, the ACP and the AMF wish to clarify the current regulatory framework governing this practice in order to ensure that it is better understood by operators and the general public. This framework is set to change after the summer, further to the conclusions of the Assises de l'entrepreneuriat (Entrepreneurship Meetings) intended to promote these new innovative funding methods whilst offering effective protection to the public.

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