The Securities and Exchange Commission (SEC) has launched its long-awaited guidelines for equity-based crowdfunding. Building upon public feedback, these guidelines aim to unlock crowdfunding’s potential as a financing tool for Micro, Small, and Medium Enterprises (MSMEs) and startups. By establishing a clear regulatory framework, the guidelines address critical gaps that have hindered entrepreneurial growth while ensuring investor protection.
The guidelines outline regulations for various aspects of crowdfunding, including the process of applying for a crowdfunding intermediary licence, the responsibilities of such intermediaries, the involvement of crowdfunding participants, transaction-related requirements, obligations for issuers, activity restrictions, and additional criteria for soft commodities digital investment platforms.
Rev. Daniel Ogbarmey Tetteh, Director-General of the SEC, underscored the importance of the guidelines to the capital market. He noted that Ghana had witnessed “the transformative power of crowdfunding in various sectors,” citing agriculture and healthcare as examples where entrepreneurs leveraged “the collective strength of the crowd to bring their ideas to life.” However, Tetteh acknowledged that “the absence of a clear regulatory framework” had limited the full potential of this innovative financing model. The guidelines, he declared, “are designed to change that.” They would “provide a robust framework that protects investors, ensures transparency, and fosters trust in the crowdfunding ecosystem.” By establishing clear rules and standards, an environment would be created where both investors and fundraisers.
Source: UNCDF
