UK Games Industry Wants 'Light Touch' for Crowd Funded Games
Also no limits and no shares...
Well, you illustrate something on "Crowd Funding" then!
One of the UK's video games representative bodies UKIE (Elspa as was to old folks) has put together a report on the whether the kind of 'crowd funding' that has done Tim Schafer so much good could work in the UK. In short: It Could.
However, due to government legislation on things like financial auditing, bonuses, share ownership... well, we don't have crowd-funding of UK-based projects in place.
The UKIE report - that picks up and expands on UKIE mainstay Andy Payne's recent exclusive article for SPOnG, states that:
"Crowd funding to be permitted generally: Although this report primarily looks at crowd funding for the interactive entertainment industry, the recommended changes can have many benefits for SMEs from other sectors and wider community based projects throughout the UK."
"A 'light touch' regulatory regime: Allowing for fast moving investment in businesses and projects whilst maintaining an appropriate level of protection for potential investors."
"No requirement to issue shares to investors: It should be possible to effect crowd funding projects as collective investment schemes and therefore without the need to issue shares to individual investors."
"No limit on what can be raised per project: There should be no limit on the amount that can be generated by crowd funded collective investment schemes, provided that a fund that is seeking to raise over €5 million would have to produce a prospectus (this derives from the Prospectus Directive)."
"An investment limit per person per project: It is important to have a limit to reduce the possibility of any individual investing too great an amount in a project that is unsuccessful."
While the idea of 'light touch' financial regulation is a terrifying one, the other ideas sound constructive. So, it's down to the likes of Ed Vaisey MP to take note and push hard for the industry.
Full report right here.
However, due to government legislation on things like financial auditing, bonuses, share ownership... well, we don't have crowd-funding of UK-based projects in place.
The UKIE report - that picks up and expands on UKIE mainstay Andy Payne's recent exclusive article for SPOnG, states that:
"Crowd funding to be permitted generally: Although this report primarily looks at crowd funding for the interactive entertainment industry, the recommended changes can have many benefits for SMEs from other sectors and wider community based projects throughout the UK."
"A 'light touch' regulatory regime: Allowing for fast moving investment in businesses and projects whilst maintaining an appropriate level of protection for potential investors."
"No requirement to issue shares to investors: It should be possible to effect crowd funding projects as collective investment schemes and therefore without the need to issue shares to individual investors."
"No limit on what can be raised per project: There should be no limit on the amount that can be generated by crowd funded collective investment schemes, provided that a fund that is seeking to raise over €5 million would have to produce a prospectus (this derives from the Prospectus Directive)."
"An investment limit per person per project: It is important to have a limit to reduce the possibility of any individual investing too great an amount in a project that is unsuccessful."
While the idea of 'light touch' financial regulation is a terrifying one, the other ideas sound constructive. So, it's down to the likes of Ed Vaisey MP to take note and push hard for the industry.
Full report right here.
Companies:
UKIE
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