Crowdfunding (CF) platforms are a popular way to solicit charitable donations and raise funds for projects or business ventures. With CF platforms, access to funds has expanded for start-up companies and for micro, small, and medium-sized enterprises (MSMEs).
CF refers to the financing method of pooling small amounts of money from a large number of people to finance charitable causes, campaigns, projects or business ventures.
In line with this developing innovation, the Securities and Exchange Commission (SEC) released proposed rules and regulations on CF for public feedback. The proposal to regulate CF in the Philippines is consistent with countries such as the US, Canada, and Singapore, which have already established regulations on CF transactions.The SEC rules attempt to strike a balance between the dual responsibilities of the SEC to encourage capital formation, and to protect investor interests.
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LEIA CLARISSA VERONICA R VERACRUZ is an associate of the corporate and special projects department at ACCRA Law Offices
Manila office: ACCRALAW Tower, 2nd Avenue corner, 30th Street, Crescent Park West, Bonifacio Global City
1635, Taguig City, Metro Manila, Philippines
Tel: +632 830 8000