Canada    FinTech Guide    Chapter 5    South Africa


5. Crowdfunding / Crowdinvesting / Crowdlending
South Africa  South Africa

It is new and as a result not oversubscribed or saturated by any means.



Legal Affairs


Currently there are no specific laws that govern crowdfunding in South Africa. The FSCA reiterated their stance that crowdfunding was subject to their regulation and these businesses must follow the regulations of the FAIS Act.

Depending on the specific business of the crowdfunding platform they might fall within the ambit of some of the legislation in the financial services sector. Every case must be assessed on its own merit, especially if there will be an active participation from the crowdfunding platform in terms of advice and intermediary services on equity crowdfunding. Another difficulty in regulating these funds is that country borders are not a barrier for entry at this stage so multinational firms effectively operate in South Africa as well, depending on their own regulations in the country of incorporation.



Economic Conditions


This is unknown due to the market being in its early stages. Some of the competitors:


  • Kickstarter
  • Jumpstarter
  • Rainfin
  • Thundafund
  • Backabuddy


Contributing Authors

Garlicke & Bousfield Inc

Brian Jennings
Durban, South Africa

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Chapter Index:


1. Payment Services / Mobile Payment

2. Asset and Portfolio Management

3. Consulting and Broking Services / Robo-advisory / Auto-trading

4. Trading Platforms / Social Trading Platforms / Signal Following

5. Crowdfunding / Crowdinvesting / Crowdlending

6. Virtual Currency - Bitcoin

7. Loan Services / Factoring / Loan Broking / Finetrading

8. Online Banking Services

9. Analytics and Research / Data Management / Risk Management

10. Accounting

11. Identification

12. Online-pawning

13. InsurTech

14. RegTech

15. Initial Coin Offerings (ICOs)

Disclaimer:
The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: 1 August 2019