The European Crowdfunding Network (ECN), recently met in Lisbon, Portugal, where they announced their new Board of Directors. In conjunction with this meeting, the new board has published an updated Code of Conduct for platforms, alongside a Charter of Crowdfunding Rights users. The two documents are designed to aid in creating an environment of transparency for the new industry by advocating professionalism and protecting backers/investors interests.
The Code of Conduct sets out best practice principles, with the following objectives:
- State the principles of ethical behaviour that the ECN and its members shall abide by
- Assert a collective view that high and professional standards of commercial and social honour are just and equitable principals worth promoting and abiding by
- Provide the basis for consideration of and dealing with lapses in professional conduct within the ECN
- Provide transparency on business models and industry data.
The ECN expects all its members to adhere to these confines and reserves the right to audit platforms – either directly or via a third part to assure compliance.
The Charter of Crowdfunder’s Rights applies to both investors and donors/contributors and asks that any participant should be able to depend upon certain criteria and information regarding projects, project owners and platforms.
“By publishing these two documents we are achieving another important milestone in contributing to make this growing industry more transparent and professional. In the future, we hope to see more of our members and other interested parties contributing to improve the Code of Conduct and the Charter of Crowdfunder’s rights, in order to guarantee that the sector adopts the highest standards of transparency and the existing best practices”, stated Oliver Gajda, ECN Executive Director.
There have been other associations that have created similar documents recognizing the nascent crowdfunding industry will benefit by incorporating best practices and establishing a level of consistency across platforms. The P2PFA has long held specific requirements for peer to peer lenders that have helped to foster industry growth and solid user experience.
The two documents are embedded below.
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