Crowdfunding Standards Board

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 NCFA Crowdfunding Standards Board

 About NCFA Canada's Crowdfunding Standards Board

The Crowdfunding Standards Board (CSB) is a sub-committee of the National Crowdfunding Association of Canada (NCFA Canada), a registered Canadian not-for-profit corporation. The CSB draws on the expertise of lawyers, accountants, entrepreneurs, regulators, anti-fraud investigators, bankers, payment processors and investors to create crowdfunding standards for portals and issuers raising capital from the crowd.

While we recognize that the Canadian crowdfunding industry is still nascent, the intent of the CSB is to work towards publishing Canadian crowdfunding standards to help protect investors and participants from fraud, mismanagement and poor investments opportunities by promoting transparent and fair crowdfunding practices.

Crowdfunding Standards

Initially, CSB standards will be designed to serve as an industry benchmark for service providers, issuers and a wide variety of industry participants to use as a guideline (or checklist) when raising money online, particularly with equity crowdfunding investments.

As various provincial crowdfunding rules are adopted and the Canadian crowdfunding industry matures and achieves due growth, CSB standards will help prevent and detect corporate fraud and provide effective remedies where fraud or mismanagement are suspected.

Our crowdfunding standards will be developed and overseen by a board made up of professionals who have years of experience detecting, investigating, prosecuting, litigating and reporting on corporate fraud as well as creating and growing successful business. Our standards aim to balance investor participation and risk mitigation with the efficient and affordable operation of crowdfunding businesses.

Mission and Objectives

The National Crowdfunding Association of Canada's mandate is to create a strong and vibrant crowdfunding industry across Canada. To do this, the Crowdfunding Standards Board was created to build crowdfunding excellence through common standards of practice and strengthen confidence in the ecosystem.

The CSB standards were drafted to encompass the following core principles and objectives:

  1. Transparent Investment Opportunities
  2. Early Fraud and Mismanagement Detection
  3. Affordability for Issuers
  4. Efficiency by Leveraging Technology
  5. Effective Dispute Resolution
  6. Canadian Job Creation and Business Growth
  7. Director and Management Accountability
  8. Meaningful Ongoing Disclosure
  9. Professionalism
  10. Fairness and Equality

 

Support NCFA

The National Crowdfunding Association of Canada (NCFA Canada) is a national non-profit actively engaged with social and investment crowdfunding, alternative finance, fintech, peer-to-peer (P2P), initial coin offerings (ICO), and online investing stakeholders across the country. NCFA Canada provides education, research, industry stewardship, networking opportunities and services to thousands of community members and works closely with industry, government, academia and eco-system partners and affiliates to create a vibrant and innovative fintech and online financing industry in Canada.  For more information, please visit:  www.ncfacanada.org

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One Response to Crowdfunding Standards Board

  1. I think that this is a fantastic initiative. Let me know if I can be of any help.

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