The regulatory framework necessary for the launch of the first Italian crowdfunding platforms is now completed with the resolution of the CONSOB, the equivalent of the US Securities and Exchange Commission, setting out requirements for companies running such platforms.
The last regulatory obstacle to the launch of crowdfunding platforms has been removed and the CONSOB has established the registry of entities managing crowdfunding platforms whose directors shall have not faced criminal sanctions and meet requirements linked to their professional skills. Also, some behavioral requirements have been prescribed in relation to the management of conflicts of interest, diligence in the management of the platform and equal treatment of the recipients of the offers. Likewise, strict transparency requirements shall be complied with in order to acknowledge investors of the type of investment and don’t mislead them as to its terms also providing a withdrawal right to be exercised within 7 days from the order.
Regulations focus on the need to ensure a full understanding by investors – and in particular by those different from professional investors – of the rules of functioning of crowdfunding platforms and of investments in innovative start-ups, also providing general information on, among others, the risks associated to such investments and their tax treatment even testing their understanding through an ad hoc questionnaire.
It will be interesting to see which operators will take advantage of this opportunity and lead the market of crowdfunding platforms.