IOSCO believes it is important for regulators and policy makers to balance the need for supporting economic growth and recovery with that of protecting investors when developing crowdfunding as a means to invest in small firms and start-ups.

Drawing on the findings from the Crowdfunding 2015 Survey Responses Report published today, IOSCO would like to raise awareness regarding some of the major risks investors face when investing in crowdfunding. It also would encourage regulators and policy makers to note the measures currently taken by regulators to address the risks inherent in crowdfunding.

Because crowdfunding is in its infancy, IOSCO has not yet proposed a common international approach to the oversight or supervision of crowdfunding. But the Statement encourages regulators to take into account possible cross border implications.