Recently, the Financial Markets Authority (AFM) reviewed the regulations for crowdfunding platforms. The review reveals risks that are priorities for the AFM. There is scarcity in the crowdfunding market. Under pressure from this scarcity, investors make financial decisions in a very short time. The AFM is coming up with new regulations partly because of this.
New AFM regulations
All project information will soon have to be available to all investors on the platform 48 hours in advance of the subscription opening. This is a new regulation. Furthermore, the AFM expects the industry to make a substantial effort to ensure that investors are more likely to comply with the advice to invest a maximum of 10% of their freely investable assets in crowdfunding. Consumers are allowed to deviate from this guideline but platforms must be able to justify these deviations on an individual basis. A platform must at least be able to explain to the AFM why it considers it justified for an investor to invest more than the advised 10% in crowdfunding. The investor test will remain but the frequency of its repetition will decrease.
All crowdfunding platforms will soon be invited to participate in a meeting at the AFM on the evaluation of the regulations. This meeting will take place in early September. After this, the timeframe for implementing these regulations will be announced.
How will Crowdrealestate respond to this?
Information on projects
To date, Crowdrealestate almost always works with a pre-registration period. This means that investors first reserve a participation amount and only later actually invest. Here, all project information is available to all investors more than 48 hours before the subscription opens. Crowdrealestate will apply this as standard with every new proposition. The current 24-hour reflection period afterwards will also remain in place.
Investing responsibly
In Crowdrealestate's investment process, investors are advised several times to invest only a responsible portion of the capital. In addition, this point weighs extra heavily in the mandatory investor test. Perhaps this will be further emphasised in the future.
Investor test
At Crowdrealestate, all investors are required to pass part of the investor test with every investment. This has always been the case, so there is most likely no need to change the frequency of the investor test.
See the AFM press release for more information.