The Comisión Nacional del Mercado de Valores (CNMV) in Spain has approved Arboribus to operate as a Participatory Financing Platform (PFP) joining a growing list of regulated platforms. Arboribus is an online lender providing access to capital for SMEs. A PFP is a new type of online market where investors, both accredited and non-accredited, may invest in both debt and equity securities.
Carles Escolano, co-founder of Arboribus, commented on the government approval saying regulation was necessary for institutional investors to add this asset class to their portfolios. The approval also meant sufficient safeguards were in place to allow advisors and asset managers to recommend their services to their customers.
“In a market like Spain, a very conservative country in regards to investment, these customers have begun to incorporate this type of asset opting for carefully selected and well – established companies, with revenue up 50 million euros and obtaining higher yields 5%,” addded Josep Nebot, co-founder of arboribus. “Crowdlending within the country ‘s financial sector is already a reality. Obtaining the license by the CNMV consolidates the model and opens the door to skeptical investors to enter into an investment product that was not previously regulated.”
Arboribus has been in operation for the past few years and has originated €8.14 million to date. Arboribus predicts it will facilitate approximately €20 million in SME loans.
— Arboribus (@Arboribus) August 22, 2016