Article: Equity Crowdfunding and Mini-Bonds: A Tool for the Economic Recovery of SMEs: Ratio, Dangers and Prospective in the UK and Italian Jurisdictions

Abstract

The following paper, after briefly outlining what mini-bonds and equity crowdfunding platforms consist, will deal with the regulations in the UK and in Italy to regulate the placement of mini-bonds through crowdfunding platforms in a second chapter, outlining the similarities and divergences of methods and purposes with which they were conceived in the two countries. In a third chapter the advantages and disadvantages with regard not only to the placement of mini-bonds through crowdfunding platforms for SMEs that issue mini-bonds, but also for consumers will be analysed. Finally, in the last chapter the author will try to clarify and justify the ban by the FCA to retail investors for purchase of “speculative illiquid securities” also due to the numerous scandals that occurred in the UK, but at the same time, proposals will be put forward aimed at better regulating the phenomenon and encouraging the use of this alternative financial instrument. Mini-bonds, crowdfunding, alternative finance, fintech, financial technologies, comparative law, SMEs, economic policies, Italian jurisdiction, UK jurisdiction.