Fintech

No Comment
Feedback on Crowd Dialog Athens 2017

Just a couple of days ago more than 450 delegates from 32 countries gathered in Athens for the Crowd Dialog Europe.

All 22 main stage talks have been remastered and will be available online one the YouTube channel. To start, discover the the first set of 3 talks and presentations.

Talk #1 – Benchmarking Crowd Regulations

Samson Williams
Chief Strategy Officer, CoFunder

A constitutional journey via USA and Africa to the European Union

The key to successful equity crowdfunding is realizing what you are in fact doing – selling. Every successful equity crowdfunding effort is in fact not about “funding” but about marketing, advertising and ultimately selling your offering. The regulations around marketing your offering vary depending on what your offering is, where you’re physically offering it, and who can participate in the offering.

Please download Samson´s presentation here Going Grey – the wild west of ICOs and crowd sales

Talk #2 – New actors – new money – new conversations

Florence de Maupeou
Coordinatrice générale at Financement Participatif France

A mapping of recent initiatives in France

How can the crowdfunding actors converge to initiate a dialogue with the stakeholders and allow the development of crowdfunding? For many of the ‘new actors’, new platforms have developed as spaces for convergence and agenda-setting. A case for a coherent approach to crowdfunding making it easier, more transparent and trustworthy, to facilitate citizens’ cross-border investments.

Please download Florence´s presentation here New actors – new money – new conversations

 

To know more about the emergence of a meta-organisation for the development of crowdfunding, read the article of Héloïse Berkowitz and Antoine Souchaud (in French) :

Combler un vide organisationnel dans la fabrique d’une politique publique : l’émergence d’une méta-organisation

Héloïse Berkowitz et Antoine Souchaud
Octobre 2017

[READ THE ARTICLE (in French)]

Abstract :
Comment assurer la réussite d’une fabrique plurielle d’une politique publique dans un secteur émergent comme le financement participatif ou crowdfunding ? A travers une étude de cas approfondie, cet article revient sur la place des plateformes de crowdfunding dans le réseau d’acteurs cherchant à influencer la régulation, c’est-à-dire le policy network du crowdfunding. La méthodologie s’appuie sur des documents juridiques et trente-et-un entretiens pour reconstituer les séquences stratégiques de cette co-construction et les dialogues implicites entre acteurs hétérogènes. Nous montrons le passage d’un mouvement collectif informel de plateformes à une méta-organisation sectorielle forte, légitime et crédible qui contribue à la gouvernance sectorielle en gérant la pluralité des acteurs et en servant d’intermédiaire de négociation. En entrepreneur institutionnel, la méta-organisation vient compléter le policy network émergent, et conditionne la réussite de la co-construction des politiques publiques dans un secteur nouveau. Cet article contribue à développer la notion de « vide organisationnel » dans un policy network émergent, i.e. l’absence d’un intermédiaire organisé, et à montrer comment peut se structurer en réponse, une méta-organisation.

Talk #3 – A liquid global crowd wth instant scalability

Piero Zanchi
Managing Director Accenture

How to access a liquid global crowd and address instant scalability or specific needs of critical skills. The change in technology landscape and the need of agility to face the market challenges – according to the concept of “liquid workforce” – are two key drivers for a successful digital transformation. In such a context, the crowdsourcing allows organizations to expand their workforce rapidly and at scale by including external skills and resources. But only with the right mindset change and management skills, organizations could gain benefits from this technique. Accenture is embracing this technique, allowing to timely access a liquid global crowd and address instant scalability or specific needs of critical skills.

Please download Piero´s presentation here How to access a liquid global crowd

 

For 2018 the Crowd Dialog Europe motto will be “The New Beginning”.

Read More
No Comment
Propositions pour flécher l’épargne des Français vers le financement de l’économie réelle
2,6 millions de Français ont déjà contribué au financement d’un projet via une plateforme de financement participatif (ou crowdfunding). La collecte via des plateformes sous forme de don, de prêt, d’investissement en capital, en obligations ou en royalties est passée de 27 millions d’euros en 2013 à près de 234 millions en 2016.
Cette dynamique est conforme au vœu formulé par le gouvernement en 2014 de faire de la France le pays pionnier du financement participatif. Volonté confortée par Emmanuel Macron, alors ministre de l’Economie, de l’Industrie et du Numérique, lors des Assises de la finance participative le 29 mars 2016, qui avait affirmé que « nous ne sommes qu’au tout début, la révolution ne fait que commencer ».

En octobre 2014, les plateformes de crowdfunding ont vu naître la mise en place d’un cadre réglementaire spécifique à leurs activités, avec la création des statuts d’intermédiaire en financement participatif et de conseiller en investissements participatifs. Deux ans après, la mise en place de réformes ont permis un assouplissement du fonctionnement du financement participatif (augmentation des seuils, éligibilité d’autres titres financiers, création du minibon…). Les mesures relatives à la législation de cet outil de financement ont été avant-gardistes, cependant, la tendance est désormais à l’application des réglementations concernant les intermédiaires financiers traditionnels qui n’encouragent pas le développement du secteur et mettent en péril la pérennité des plateformes. Il faut lever des freins au développement du secteur et renforcer les outils à leur disposition pour faire face à la concurrence internationale .

Les acteurs du crowdfunding, représentée depuis 2012 par Financement Participatif France qui rassemble 70 plateformes, formulent ici 15 propositions afin de faciliter le développement du crowdfunding, avec pour objectifs de :

  • Encourager les particuliers à affecter une partie de leur épargne ou de leurs revenus au financement de l’économie réelle, de la création d’emplois, de l’innovation ;
  • Faciliter l’accès au financement participatif pour le plus grand nombre d’acteurs économiques ou associatifs, publics et privés ;
  • Faire des plateformes françaises les leaders européens du crowdfunding.

Aujourd’hui, la France doit se donner davantage de moyens pour mener cette révolution, mobiliser l’épargne des Français vers le financement direct de l’économie réelle.

Nos plateformes impliquent des millions d’épargnants collaborativement dans cette dynamique. Elles contribuent également à la compétitivité de l’écosystème français de la fintech qui construit la finance de demain. Donnons lui les moyens de mener à bien cette révolution.

[VOIR LES PROPOSITIONS FORMULÉES PAR FINANCEMENT PARTICIPATIF FRANCE]

 

 

 

Read More
No Comment
How to build a more competitive and innovative European Fintech sector?
On March 2017, European Commission send a public consultation on FinTech to seek input from stakeholders to further develop the Commission’s policy approach towards technological innovation in financial services. All citizens and organizations were welcome to contribute. Financement Participatif France, the representative professional association of the crowdfunding sector, answered the consultation.

Crowdfunding (financement participative in French) is an efficient tool to direct citizens’ savings towards financing the real economy. Based on the principles of proximity, choice, transparency and traceability, crowdfunding allows an optimum allocation of resources through an intermediary platform which investigates, analyses and rigorously selects companies’ projects before proposing to individual investors to finance them.

For instance, in Europe, alternative finance experienced a booming growth of 92% and reached € 5.4 billion in 2015. In France, in 2016, nearly € 235 million was collected by crowdfunding platforms, a growth of 40% of funds raised in one year[1]. Research by Massolution published in 2014 forecasted that worldwide crowdfunding will collect up to $ 1,000 billion in 2020.

However, the development of the crowdfunding sector could be greatly supported at the European level through the setting of a harmonized legal regulatory framework.

This European framework would ensure healthy and fair competition, protection of investors and issuers and fight against money laundering and terrorism financing.

i.       The European context: disparate national regulations

Adopted over the past three years in the context of the exemptions of MiFID and Prospectus directives[2] implemented under the appreciation of each Member States, national regulations on crowdfunding generate distortions of competition on the European market and complexity for the platforms wishing to extend their services throughout the European Union. Thus, they make it difficult for investors and issuers to access the single European market for crowdfunding.

For example, platforms in the UK are registered with the Financial Conduct Authority which authorizes them to conduct the Reception and Transmission of Orders (RTO), but not placement, and to promote financial products. Moreover, the suitability test performed with investors is a test of relatively light « appropriateness » and not of « suitability ».

In Germany, the regulators who had allowed platforms to communicate about their activities and their projects only with economic media just enlarged this possibility to all media, provided that the information disseminated respects the principles of clarity and transparency.

France has been a pioneer in Europe in setting up a regulatory framework dedicated to crowdfunding platforms with the creation of two regimes in October 2014. France now has a proven practice with firms who operate under these industry-specific statutes:

  • The crowdfunding intermediary (Intermédiaire en Financement Participatif (IFP)), supervised by the ACPR, for lending platforms and donation platforms or rewards-based crowdfunding – this statute hitherto optional for donation and rewards-based crowdfunding platforms has become mandatory since the end of 2016. Some 100 IFPs are listed in the Orias register[3] .
  • The Participating Investment Advisor (Conseiller en Investissements Participatifs (CIP)), supervised by the AMF, for the platforms intermediating specific financial instruments and minibons. Some 44 CIPs are listed in the Orias register.

The CIP statute permits a prospectus exemption for fundraising up to € 2.5 million, but this threshold is raised to € 5 million if the platform is approved as an investment firm.

If the French regulatory framework is particularly well construed for the advice and information of investors, it is finally less the case on two points: for the issuers’ protection and for the process of exercise of the platform activities.

Besides, it fails to take into account the own specificities of an activity carried through an internet platform, notably the client relationship exclusively carried through digital channels, important number of clients for small individuals amounts, double client typology (investors and issuers), advice concept on numerous securities offers, etc.

In the end, the freedom of appreciation granted to each regulator has led to an over-implementation of key directives and to regulatory jungle for the concerned actors to the expense of the consumers.

ii.       Proposal: creating a uniform European framework

Financement Participatif France (FPF) is the representative professional association of the crowdfunding sector. Created in August 2012, it now gathers 150 members, including 70 platforms of all crowdfunding categories. FPF wishes that the European Union set up the conditions for a long-term and structured development of the sector:

  • The viability of economic models of the sector’s professionals;
  • The development of innovation, compatible with the treatment process professionalisation;
  • The conditions of a safe and loyal competition between the Member States’ actors;
  • The protection conditions essential for the investors and issuers, notably in term of conflict of interests’ management; and
  • The necessary rules to fight against money laundering and financing of terrorism.

For this purpose, Financement Participatif France, in association with Paris Europlace[4], the FINANCE INNOVATION cluster, the Office de Coordination Bancaire et Financière[5], the European Crowdfunding Network and the France FinTech association, asks for the creation of a European statutes aiming at:

  • Defining the rules directly applicable below all the exemption thresholds of existing European legislations: MiFID II, Prospectus, PSD2, etc.;
  • Making ineffective any “over-implementation” by a national authority;
  • Allowing the possibility to have a European passport;
  • Ensuring the supervision of the national regulators through direct application.

iii.       Conclusion

Currently, national crowdfunding regulations do not promote fair competition in the European market. In addition, the advent of Brexit calls for particular attention to be placed on future evolution of regulation in the UK.

Europe needs to go towards a sectorial simplification and harmonization at the European level through the creation a common regime – based on a proportionality principle – to be directly applicable by the national regulators. Such European regulation would ensure the investors’ and issuers’ protection and the sector transparency, while remaining open to innovation.

[Download FPF’s position paper in English]

[Télécharger la note de position de FPF en Français]

—————————–

[1] French Barometer of crowdfunding 2016 by KPMG for Financement Participatif France

[2] As amended from time to time.

[3] Orias is the single register for intermediaries in insurance, bank and finance

[4] Paris EUROPLACE represents all the major players of the Paris Financial Centre, French and international corporates, investors, banks and financial intermediaries

[5] The Office de Coordination Bancaire et Financière (OCBF) is an organization that joins together 135 financial institutions, most of which are small and medium-sized French entities, subsidiaries or branches of major French or foreign groups.

Read More