LONDON, March 21 (Reuters) - 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 shares.
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 said. (Reporting by Huw Jones, editing by Clare Hutchison)