Article title: LEGAL REGULATION OF CROUDFUNDING AS FORMS OF CAPITAL MOBILIZATION

Article author: Bortnikov Sergey Petrovich

Number of pages: 6

Contact mail: serg-bortnikov@yandex.ru

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Annotation:
The article considers the peculiarities of the legal regulation of crowdfunding in Russia, as well as in the United Kingdom and the United States. The Institute is investigated in the variety of contracting practices: for example, "equity" crowdfunders invest in shares, while "incentive" crowdfunders receive production products in advance. The author draws attention to the fact that crowdfunding takes a position between the existing regimes of securities legislation and consumer contracts legislation. It is noted that the Consumer Protection Act in the UK (but not in the US) imposes mandatory conditions that prevent risk sharing in crowdfunding rewards, while the US Securities Act prescribes costly disclosure. The article suggests that crowdfunding, with the relative ease of raising funds of an unlimited number of persons, creates real risks for investors, and classical methods of regulation of the market and issue of securities and approaches of consumer law in the investigated relations are ineffective.