LONDON, March 21 A European Union "quality
label" for crowdfunding would help the sector attract more
investors to fund economic growth, the bloc's executive body
said in a document seen by Reuters.
Crowdfunding allows individuals and small businesses to
raise money from pools of investors who can put money into
peer-to-peer lending schemes or securities such as unlisted
The European Commission, in a draft document to be published
next week, said crowdfunding has real potential to finance
certain types of projects.
The document proposes eight actions, including setting up a
European Crowdfunding Stakeholder Forum to promote the sector,
the creation of a "quality label" to build trust among users,
and tweaking the bloc's state aid rules to allow public money to
help crowdfunding platforms in some circumstances.
"The European Commission sees great potential in
crowdfunding to complement traditional sources of finance and
contribute to the financing of the real economy, smart,
sustainable and inclusive growth and job creation," the document
(Reporting by Huw Jones, editing by Clare Hutchison)