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FinTechs belonging to this category operate crowdfunding, crowdinvesting and crowdlending platforms on which money is raised to invest in various projects, mainly start-up companies and real estate projects.
Crowdfunding is not a defined financial service, but generally used to describe donation-based crowdfunding (the investor donates the money to the project), reward-based crowdfunding (the investor receives an often symbolic consideration for his investment), equity-based crowdfunding (crowdinvesting: the investor participates in the profits of the financed project or acquires shares or debt instruments) or lending-based crowdfunding (crowdlending: the investor is reimbursed at the end of the project with or without interest).
Introduction
Attitude of the country towards crowdfunding, crowdinvesting and crowdlending platforms
In Portugal, the market is still in development, as there are only six (6) registered platforms with financial-return models, mainly loan-based, and 13 with non-financial return models. Crowdfunding platforms are mainly local, without relevant cross-border activity.
Legal affairs
Obligations and requirements to provide crowdfunding, crowdinvesting and crowdlending platforms described above
The legal framework for crowdfunding was introduced by Law 102/2015 of 24 August (Regime Jurídico do Financiamento Colaborativo, hereinafter RJFC), which entered into force on 1 October 2015 (Article 25 of the RJFC). The RJFC underwent its first amendment with Law 3/2018, of 9 February, which approved the sanctions regime applicable to crowdfunding. The RJFC is applicable to four (4) models of crowdfunding: (i) crowdfunding by donation; (ii) reward-based crowdfunding; (iii) equity crowdfunding; and (iv) loan-based crowdfunding.
Financial-return crowdfunding (i.e. equity and loan-based crowdfunding) is also subject to Regulation 1/2016 (hereinafter Regulation 1/2016 CMVM), approved and published by the Portuguese Securities and Exchange Commission (hereinafter, the CMVM).
The activity of non-financial return crowdfunding platforms (donations and rewards) is dependent on the prior communication to the Directorate General for Economic Activities (Direção-Geral das Atividades Económicas, hereinafter DGAE) (Article 12(1) of the RJFC) on the intention to begin such activity, which is carried out through the communication procedures established in Ordinance 131/2018 of 10 May. The supervision, as well as the application of any sanctions for breaches of the regulation on non-financial return crowdfunding, is under the authority of the Economic and Food Safety Authority (ASAE), pursuant to the provisions of Article 2(1) of Law 3/2018, of 9 February.
Under the applicable legislation, the activity of financial-return crowdfunding (equity and loan-based) is dependent on the prior registration of the crowdfunding service providers with the CMVM, with the purpose of ensuring “the control of the requirements for the exercise of the activity by crowdfunding platforms”. Crowdfunding service providers must satisfy one (1) of the following prudential requirements set out in Article 2 of Regulation 1/2016 CMVM: (i) having a minimum share capital of € 50,000; (ii) valid civil liability insurance appropriate to the activity, or some other comparable guarantee against liability arising from professional negligence, covering losses in the minimum amount of € 1,000,000 per event, or € 1,500,000 for all events occurring during one (1) year; or (iii) a combination of the prudential requirements mentioned before. The registration is subject to a registration fee of € 1.000, and the CMVM is