The below document is a presentation by a French crowdfunding advocacy group: Financement Participatif France (FPF). This document was delivered to the EU’s European Crowdfunding Stakeholders forum this past September. The FPF adopted these parameters in April of 2014. France released final investment crowdfunding regulations this past October.
In brief the code incorporates:
- Members feel morally responsible for the honesty of the means employed, the veracity of messages, rigor in the management and the proper use of the funds collected.
- Platforms must clearly explain what kinds of projects they accept, and the existence or absence of a selection process
- The contributors … must be able to understand clearly, in plain language, the destination of their money. Information on risks and counterparties – Potential risks borne by the funder should be clearly explained in plain and intelligible language
- Information about the service provided by the platform
- For projects in search of funding: due diligence on the accuracy of the information published ?
- On the platform of crowdfunding: (to publicly provide indicators of activity on the platform)
- Regarding the operation of transactions on the platform:The mechanics of financing and transactional flows must be explained in plain language.
- Regarding the remuneration received by the platform: must be described
- Each platform provides secure transactions and information (including personal and private data) provided by funders andproject leaders.
- Conflicts of interest : must be described
- one party (funder, project leader or platform), at its will, may use arbitration organized by the association Financement Participatif France, provided plaintiff and defendant agree to respect the arbitration
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