What does PSFP approval change for investors and the market?

Crowdfunding is a financing method that enables individuals to raise funds from a large number of investors via an online platform. Crowdfunding is becoming increasingly popular, and there are now many crowdfunding platforms in France.

In 2020, the European regulation on crowdfunding (Regulation (EU) 2020/1503 of the European Parliament and of the Council of July 7, 2020 on crowdfunding services for businesses) was adopted. This regulation created a new regulatory framework for crowdfunding, and introduced the status of participatory finance service provider (PSFP).

A PSFP is a crowdfunding platform that has received received approval from the Autorité des marchés financiers (AMF). PSFPs must comply with a number of requirements, particularly in terms of governance, risk management and investor protection.

PSFP approval has several advantages for investors and the market. For investors, PSFP approval offers greater security. Indeed, PSFPs are subject to a number of requirements designed to protect investors against the risks of fraud and loss of money.

For the market, PSFP approval enables the development of participative financing in France and on a European scale. AMF-approved PSFPs can offer their services to investors throughout the European Union. This creates a wider, more liquid market for crowdfunding.

PSFP approval is therefore a positive development for participatory financing in France. It offers greater security for investors, and is helping to develop the market.

 

What are the advantages of PSFP approval for investors?

 

PSFP approval offers investors several advantages, including:

• Greater security: AMF-approved PSFPs are subject to a number of requirements designed to protect investors against the risks of fraud and loss of money. For example, PSFPs must have a risk management system and professional liability insurance.
• Greater transparency: AMF-approved PSFPs must provide full, transparent information on their services and the projects they offer investors. This enables investors to make informed decisions before investing.
• Greater variety of offerings: AMF-approved PSFPs offer a wider choice of projects than non-approved platforms. This enables investors to diversify their investment portfolios.

 

What are the advantages of PSFP accreditation for the market?

 

PSFP approval offers several advantages to the crowdfunding market, including:

• Market development: AMF-approved PSFPs can offer their services to investors throughout the European Union. This creates a larger, more liquid market for crowdfunding.
• Improved image of crowdfunding: PSFP accreditation gives crowdfunding platforms greater legitimacy and a better image with investors. This helps attract new investors and develop the market.
• Greater attractiveness to institutional investors: AMF-approved PSFPs can attract institutional investors, such as pension funds and insurance companies. This makes it possible to mobilize larger volumes of capital for crowdfunding projects.

 

In conclusion, PSFP approval is a positive development for participative financing in France. It offers greater security for investors, and is helping to develop the market.