The Ministry of the Treasury and Public Funding has issued the regulations with provisions for crowdfunding, the draft of which we discussed in  issue 13 of Progreso.

The decree establishes that crowdfunding (defined as an activity in which more than one contributor are in contact with recipients raising funds in their own name, targeted on a productive investment project) may only be conducted by entities properly authorized by Colombia's Financial Authority.

This activity, conducted on an electronic platform, can be of two kinds: i) crowdfunding through debt securities (promissory notes or commercial paper, for example); and ii) crowdfunding through capital securities (shares).

The regulation establishes the requirements for the constitution of these crowdfunding entities, the prohibitions or limitations on how they conduct their activity, the adoption of a procedure for selecting the projects to be funded and the minimum content in their operating regulations.

Crowdfunding institutions must supply a minimum of information, both to contributors and to recipients of funds, that should be updated, free of charge to access and easily viewable on their websites and any other means providing entry.

Furthermore, the regulation sets investment limits on contributors (maximum 20% of their annual income or of their wealth, whichever is higher) and maximum funding amounts (between  EUR 666,000 and EUR 2,219,000).