The Regulation of Crowdfunding in the German Small Investor Protection Act: Content, Consequences, Critique, Suggestions

European Company Law, 13(2): 56-66, 2016

21 Pages Posted: 19 Apr 2015 Last revised: 17 Jun 2017

Lars Klöhn

Humboldt University of Berlin - Faculty of Law

Lars Hornuf

University of Bremen - Faculty of Business Studies and Economics; Max Planck Institute for Innovation and Competition; CESifo (Center for Economic Studies and Ifo Institute)

Tobias Schilling

Humboldt University of Berlin - Faculty of Law

Date Written: June 2, 2015

Abstract

The German Bundestag has adopted the Small Investor Protection Act on 23 April 2015, which will enter into force in the coming weeks. By this Act the German legislator establishes for the first time – among other things – a regulation of the German crowdfunding market. This article describes the content of the act as relevant to crowdfunding, identifies its probable consequences, and examines the most important rules with respect to their regulatory effects. The authors conclude that despite some modifications that have been made in the course of the legislative process there still is an urgent need of improvement regarding some provisions.

Keywords: crowdfunding, crowdinvesting, startups, entrepreneurship, securities law

JEL Classification: K2, M2, G3

Suggested Citation

Klöhn, Lars and Hornuf, Lars and Schilling, Tobias, The Regulation of Crowdfunding in the German Small Investor Protection Act: Content, Consequences, Critique, Suggestions (June 2, 2015). European Company Law, 13(2): 56-66, 2016. Available at SSRN: https://ssrn.com/abstract=2595773

Lars Klöhn

Humboldt University of Berlin - Faculty of Law ( email )

Unter den Linden 6
Berlin, D-10099
Germany

HOME PAGE: http://https://plone.rewi.hu-berlin.de/de/lf/ls/kln

Lars Hornuf (Contact Author)

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

University of Bremen - Faculty of Business Studies and Economics ( email )

Bremen, D-28359
Germany
+49 89 20348619 (Phone)

HOME PAGE: http://www.hornuf.com

Max Planck Institute for Innovation and Competition

Marstallplatz 1
Munich, 80539
Germany

Tobias Schilling

Humboldt University of Berlin - Faculty of Law ( email )

Unter den Linden 6
Berlin, D-10099
Germany

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