Financial-Return Crowdfunding and Regulatory Approaches in the Shadow Banking, Fintech and Collaborative Finance Era

39 Pages Posted: 8 Dec 2017 Last revised: 12 May 2018

See all articles by Eugenia Macchiavello

Eugenia Macchiavello

University of Genoa, Department of Law - Section of Business and Economic Law; Genoa Centre for Law and Finance

Date Written: February 1, 2017

Abstract

The relationship between financial innovators and regulators has been historically tense, with financial innovators taking advantage of loopholes and regulators desperately trying to keep pace with innovations while dealing with limited resources and long bureaucratic processes. Nonetheless, in recent years, FinTechs - un-regulated start-ups applying technology to finance - have exponentially accelerated such race, making new regulatory approaches and perspectives necessary. The present paper discusses relevant issues pertaining to the regulation of FinTech, using financial-return crowdfunding (FR-crowdfunding) as case study and model, deriving from its FinTech, shadow banking and collaborative economy natures, important indications for regulators. Current trends in regulating FR-crowdfunding in member States are also analysed, together with related shortcomings and benefits, with the view to proposing a more harmonised regime for the sector, tailored to its risks and features and advancing Capital Markets Union objectives.

Keywords: Financial-Return Crowdfunding, Fintech, Financial Innovation, Shadow Banking, Collaborative Finance, Capital Market Union, MiFID, CRDIV/CRR, AIFMD/EuSEF/EuVECA/ELTIF, Non-Bank Financial Institutions

JEL Classification: G20, G21, G23, G28, K22

Suggested Citation

Macchiavello, Eugenia, Financial-Return Crowdfunding and Regulatory Approaches in the Shadow Banking, Fintech and Collaborative Finance Era (February 1, 2017). an updated and more complete version forthcoming in 14 (4) European Company and Financial Law Review (2017) 662, Available at SSRN: https://ssrn.com/abstract=3082192

Eugenia Macchiavello (Contact Author)

University of Genoa, Department of Law - Section of Business and Economic Law ( email )

Via Balbi 22, 2nd floor
Genova, Genoa 16126
Italy

Genoa Centre for Law and Finance ( email )

Via Balbi, 22
16126 Genova
Italy

HOME PAGE: http://www.clfge.org/teams/eugenia-macchiavello/

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