Crowdfunding caps raised


#1

A quick note to let you know that a good bit of news came out of HM Treasury today: from 21 July, the prospectus threshold will be raised from €5 million to €8 million. In practice this means that CrowdCube will able to run campaigns of up to €8 million on the platform, whereas they used to be capped at €5 million. This is a nice expansion opportunity for them and for the sector.

For those interested in the statutory background, here is the legislative instrument: http://www.legislation.gov.uk/uksi/2018/786/contents/made


#2

Regulation 2(2) implements Article 3(2) by amending section 86 of the Act.
Section 86 provides for exemptions from the obligation to publish a prospectus in relation to offers from the public.
The threshold for offers to the public that are exempt from the obligation to publish a prospectus is increased to euros 8,000,000.

Regulation 2(6) implements Article 1(3) by amending Schedule 11A to the Act.
Schedule 11A provides for exemptions for securities from the scope of the prospectus regime altogether and the threshold for securities exempt from the regime has been reduced to euros 1,000,000.