Crowdfunding is the latest investment trend that uses online technology platforms to address both the needs of investors and small-medium enterprises (SME). At one hand, retail investors are looking for viable fixed income sources to grow their wealth. On the other hand, we have start-ups and SMEs which lack access to alternative pools of private financing, other than commercial banks. This is where crowdfunding can help to bridge the gap. In a recent consultation paper issued, the Monetary Authority of Singapore (MAS) is proposing measures to facilitate crowdfunding involving securities. Generally there are four types of crowdfunding – donation-based, reward-based, lending-based and securities-based. According to MAS, donation-based and reward-based are not subjected to securities regulation as there are no exchange of securities and promised of financial returns. However, for lending-based and securities-based, MAS deemed that they are subjected to securities rules. Henceforth, MAS’ proposed framework for securities-based include the ......