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
Date Written: June 2, 2015
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: Suggested Citation