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Part I Sketching a Legal Taxonomy of Crowdfunding, 2 The Crowdfunding Regulation in the Context of the Capital Markets Union

Eugenia Macchiavello

From: The EU Crowdfunding Regulation

Edited By: Pietro Ortolani, Marije Louisse

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2023. All Rights Reserved.date: 03 March 2024

Capital markets — Financial regulation — Alternative investment fund

This chapter examines the broader EU law context within which the new Crowdfunding Regulation fits. The Crowdfunding Regulation was proposed as part of the Fintech Action Plan, within the broader and pre-existing Capital Markets Union (CMU) Action Plan (September 2015), and eventually adopted in October of 2020. The Crowdfunding Regulation aims to create a single crowdfunding market, improving firms’ financing while protecting investors and ensuring a level-playing field for different operators. Thus, it shares with most CMU actions the difficult task of balancing the goal, on the one hand, of expanding Small and Medium Sized Enterprises’ (SMEs) access to finance through simplification and, on the other, of ensuring investor protection and maintaining stability. The chapter then analyses financial-return crowdfunding (FRC) in comparison with traditional forms of finance and other alternative funding methods touched upon by the CMU Plan, and identifies the related main legal issues raised by the Crowdfunding Regulation.

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