IOSCO Publishes Statement and Survey Report on Regulation of Crowdfunding

IOSCO has published a statement and a survey report on Crowdfunding.  The press release is available here.

The statement begins:

Post the 2008 financial crisis, traditional credit providers have become increasingly constrained in their ability to make loans available for worthy investment projects, particularly with respect to small and medium enterprises. Policy makers and regulators have sought ways to encourage investment in small firms and start-ups. One of these ways has been through the use of crowdfunding, which seeks to leverage technology, inter alia, to provide an alternative channel for capital raising. However, when developing or investing in crowdfunding, 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.