The new Solicitors Accounts Rules: what has changed?
A set of new consumer protections are due to come into force on 01 April 2014.
New restrictions will apply to two types of crowdfunding- loan-based (lending to individuals or businesses in exchange for interest payment and capital repayment) and investment (equity) based (typically in Company’s in exchange for shares, debt securities or other “non-readily realisable assets”).
What is Crowdfunding?
Crowdfunding is the practice of raising capital through numerous small investors. This is predominantly done online and the investment platform may well have no lower or upper limits. In return the investor will receive either share equity and/or an “exclusive gift” which could be a ticket to a concert or a backstage pass where the investment vehicle is a band. The hosting platform generally takes around 5% commission.
Skip to content Home About Us Insights Services Contact Accessibility