Advisors steering clients around emerging pitfall

Advisors steering clients around emerging pitfall

Advisors steering clients around emerging pitfall Earlier this month the CEO of OurCrowd, the world’s largest equity crowdfunding platform appeared at the Canadian Crowdfunding Summit to discuss his company’s move to set up shop in Toronto and equity crowdfunding in general, both here and around the world.

Craig Asano is the executive director of the National Crowdfunding Association of Canada (NCFA) and the person to talk to about equity crowdfunding’s burgeoning growth in the Canadian marketplace.

Why should advisors consider this area of private capital markets?

“If I were an advisor [equity] crowdfunding’s just another tool you’re adding to your client’s possible investment opportunities,” says Asano.

Diversification for many is the key to successful investing; Asano makes it very clear that while it’s still early days when it comes to equity crowdfunding in Canada, it couldn’t hurt advisors dealing with the mass affluent or high-net-worth investors to keep abreast of the changing regulations and opportunities that will soon present themselves.

Almost all of the provinces, including Ontario, are working on exemption proposals that will allow for equity crowdfunding. Ontario’s proposal, according to Tech Vibes, would allow start-ups to raise a maximum of $1.5 million annually from non-accredited investors. Further details are expected in the summer.


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