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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
The climate towards crowdfunding platforms is positive. However, no crowdfunding specific regulations are contemplated at the moment in Switzerland.
Legal affairs
Obligations and requirements to provide crowdfunding, crowdinvesting and crowdlending platforms described above
The Swiss laws do not foresee specific rules and regulations for operators of crowdfunding platforms. If and to what extent operators of crowdfunding platform are subject to the rules and regulations of the financial market laws in Switzerland depends on their specific business model and has to be evaluated on a case-by-case basis. Platforms whose business model is the sole brokerage of financing contracts (such as in the case of donation-based or reward-based crowdfunding) are in principle not regulated to the extent that the platform itself does not become a party of such financing contract. However, operators of platforms that broker consumer loans require a cantonal license as a consumer credit broker.
If the platform operator accepts deposits from customers for onward transmission to borrowers on a commercial basis and if (i) such funds solely serve for the settlement of client transactions, (ii) no interest is paid on the funds and (iii) the settlement takes place within 60 days, no license requirement (license as a bank) under BankA may be triggered. Even if a platform accepts deposits from customers outside of the abovementioned exemption, a platform operator may under the above-mentioned circumstances be in a position to apply for a Fintech-license (or rely on the sandbox exemption, i.e. total of deposits does not exceed CHF 1 million and the interest differential business is not conducted, see details above). Further, a prospectus requirement may be triggered in the case of public offerings of bonds.
If funds are channelled through the accounts of a platform operator, anti-money laundering regulations may apply including the requirement for the platform operator to become a member of a self-regulatory organisation (“SRO”) recognised by FINMA, even if no license requirements under BankA are triggered.
Additional comments regarding the legal situation for crowdfunding, crowdinvesting and crowdlending platforms or what FinTech’s must be aware of in this business area
N/A.
Economic conditions
Market size for crowdfunding, crowdinvesting and crowdlending platforms and biggest companies in this business area
According to a study of the Lucerne University, a number of 38 crowdfunding platforms were active in Switzerland in 2021 and an amount of CHF 607 million was collected in the same year through such platforms. The volume of funds raised through crowdfunding platforms increased significantly in 2020 in terms of crowd-supporting and crowd-donating whereas the market declined in terms of crowd-lending, most likely due to COVI