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Crowdfunding: Green light from parliament

The House of Representatives adopted in plenary and unanimously, Tuesday February 11, 2020, the draft law No. 15-18 relating to collaborative financing and this, in the presence of Mohamed Benchaâboun, Minister of the Economy, Finance and of the Reform of the Administration.

Collaborative funding, known internationally as “Crowdfunding”, is a way of funding projects by the public. It raises funds, usually small, from a wide audience, mainly to finance youth entrepreneurship and innovation.

This new method of financing operates through internet platforms allowing direct and transparent contact between project leaders and contributors. These activities take three forms of financing, namely: loan, capital investment and donation.

The purpose of the bill on collaborative financing is to define the legal framework for the exercise by Collaborative Financing Companies (CFCs) of the various forms of collaborative funding.

To this end, it establishes a complete system for regulating these activities, including in particular, the creation of the status of manager of collaborative financing platforms (CFPs); defining the system for approving CFCs and supervising collaborative financing activities, defining the procedures and procedures for creating and operating CFPs; and the definition of the CFC’s commitments and obligations, in particular with regard to public information, publicity and reporting.

The regulatory system also includes the definition of the rules to be observed in terms of prior verification of projects to be funded, security of transfers and protection of contributors as well as the establishment of ceilings in terms of amounts to be raised by project and by contributors for the different forms of financing and finally, the definition of rules specific to each of the three forms of collaborative financing.

Thus, the establishment of a legal framework through Law No. 15-18 governing collaborative financing activities is part of the efforts of the Public Authorities to strengthen the financial inclusion of young project leaders, for supporting economic and social development and for channeling collective savings towards new opportunities.

This legal framework should contribute to the mobilization of new sources of funding for the benefit of very small, small and medium-sized enterprises and young people with innovative projects. It should also allow the active participation of potential funders in the country’s development projects via a simple, secure and transparent funding mechanism.

It is also a way to unleash the creative and cultural potential of young people and enhance the attractiveness and influence of the country’s financial center.

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