Part III Financing Innovation, Start-Ups, Non-Listed Companies, and Infrastructure Projects, 10 FinTech and Alternative Finance in the CMU: The Regulation of Marketplace Investing
Guido Ferrarini, Eugenia Macchiavello
Edited By: Danny Busch, Emilios Avgouleas, Guido Ferrarini
- Credit risk — Capital markets — Financial regulation — Funds
This chapter focuses on FinTech, which offers firms and individuals new ways for accessing alternative sources of finance. It first examines the main types of alternative finance which technology has helped to develop and could further complement the traditional markets, focusing on marketplace investing and its perspectives in Europe. It then analyzes financial return crowdfunding as an application of marketplace investing; its main business models, such as investment-based and loan-based crowdfunding; and the risks and benefits deriving from them. Next, it compares the different regulatory models applicable to crowdfunding at EU and member states' levels, distinguishing between the traditional approach, which extends existing banking or financial regulation to these new sectors, and the ‘innovative’ approach contemplating ad hoc regimes for crowdfunding. The final section suggests a tailored policy approach to marketplace investing in the Capital Markets Union.