![]() The objectives give the project direction, scope and focus, suggesting the methodologies to be followed. The problem under investigation will be clearly presented to justify and give rationale for what motivated the researcher to undertake the study. This chapter focuses on presenting the structure of this research project, highlighting important elements such as the topic, the objectives, the project questions and assumptions, purpose of the study, the problem statement, the limitations and the background of the study. Derivatives were re-looked as an instrument which embodies different terms, rights or obligations, to those prevailing in the underlying cash, or physical market to which the instruments relates, (Manwere, 2006). Howells and Bain (2002) define a derivative as a financial instrument based upon the performance of separately traded commodities or financial instruments, and instruments that allow market agents to gamble on movements in the prices of other instruments without being required to actually trade in them. Finally, I find that optimal regulation of investment- based crowdfunding should recognize its unique risks, which warrants a specific proportionate regulation tailor-made to address crowdfunding as such.ĭerivatives are a financial contract whose value is derived from the performance of assets, interest rates, currency rates or indices, Blake (2000). In the final chapter, I present policy proposals including key elements of bespoke regulation. Key findings include lack of standards in conducting due diligence of companies, unclear regulatory positioning or status of the investment services actually provided by the platforms. Furthermore I undertake empirical research of the largest European equity-based crowdfunding platforms, showing a discrepancy in standards across these platforms. Conducted legal analysis of the EU financial markets regulation framework, as well as of several Member States, shows significant barriers to the market development, such as lack of clarity on investment services, unsuitable MiFID exemptions, lack of single passport for bespoke regulatory frameworks, lack of harmonization of prospectus requirements for low-value crowdinvesting offerings. Through literature review I draw a list of key regulatory risks and related interventions attached to crowdinvesting, concluding that main regulatory issues include information asymmetry, risks of platform failure, retail nature of investors, poor performance of projects or companies, conflicts of interest or data privacy. This dissertation deals with the regulation of crowdfunding, with a focus on equity- based crowdfunding, with the objective to analyze its justifications, proportionality and legal barriers. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
December 2022
Categories |