Alternative forms of funding can have a positive effect on the competition in and efficiency of the financial market by enabling more projects to find funding even if, for example, banks are not willing to grant a loan. However, crowdfunding introduces certain risks for consumers.
People or firms that invest via a crowdfunding platform are in many cases exposed to a higher risk than what would normally be found in traditional investments, such as securities or funds. Despite this relatively high risk, in many respects there is no consumer protection comparable to the protection available for the traditional, regulated forms of investment.
Crowdfunding still constitutes a very small part of the financial market, and it is only partly regulated today. Given that it is an investment form that to varying degrees targets consumers, Finansinspektionen believes that a discussion is needed about whether it is necessary to introduce additional regulation for the platforms that offer equity-based and lending-based investments.