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Praxiserfahrungen mit den Befreiungsvorschriften des Kleinanlegerschutzgesetzes

Author

Listed:
  • Christa Hainz
  • Lars Hornuf
  • Lars Klöhn
  • Björn Brauer
  • Felix Ehrenfried
  • Gerrit Engelmann

Abstract

This study investigates the effects of exemption provisions within the Small Investor Protection Act that was introduced in July 2015. By increasing the regulatory obligations for issuers, the Small Investor Protection Act should lead to a higher level of transparency for investors in the so called "grey capital market". However, the act does include exemptions from certain regulatory obligations. Crowdinvesting-platforms, social, charitable and ecclesiastic projects are not obliged to publish a prospectus for the offering of an investment instrument. The investigation into the effects of these exemption rules is based on a crowdinvesting-database, a survey of social and charitable organizations and interviews with experts. In short, the effects of this act and its exemptions one year after its introduction are negligible for the market of crowdinvesting in Germany. Furthermore, the data analysed shows that investment behaviour has not changed as a result of obligations to self-disclose income and wealth on the part of investors. Investment instruments, however, have changed in the crowdinvesting market in recent years from silent partnerships to profit-participating-loans and subordinated loans. Social and charitable projects do not seem to be making use of the newly established exemptions due to the fact that there are other, and in most cases simpler, regulations that release them from the obligation to publish a prospectus.

Suggested Citation

  • Christa Hainz & Lars Hornuf & Lars Klöhn & Björn Brauer & Felix Ehrenfried & Gerrit Engelmann, 2017. "Praxiserfahrungen mit den Befreiungsvorschriften des Kleinanlegerschutzgesetzes," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 78, July.
    • Handle: RePEc:ces:ifofob:78
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    References listed on IDEAS

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    2. Robert E. Carpenter & Bruce C. Petersen, 2002. "Is The Growth Of Small Firms Constrained By Internal Finance?," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 298-309, May.
    3. Lars Hornuf & Matthias Schmitt, 2016. "Success and Failure in Equity Crowdfunding," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 14(2), pages 16-22, 07.
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    6. Klöhn Lars & Hornuf Lars & Schilling Tobias, 2016. "Crowdinvesting-Verträge," Zeitschrift für Bankrecht und Bankwirtschaft (ZBB) / Journal of Banking Law and Banking (JBB), RWS Verlag, vol. 28(3), pages 142-178, June.
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    Cited by:

    1. Christa Hainz & Lars Hornuf & Lars Klöhn & Björn Brauer & Felix Ehrenfried & Gerrit Engelmann, 2017. "Die Befreiungsvorschriften des Kleinanlegerschutzgesetzes," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 70(06), pages 26-35, March.
    2. Christa Hainz & Lars Hornuf & Lisa Nagel & Sarah Reiter & Eliza Stenzhorn, 2019. "Exemption Provisions of the German Small Investor Protection Act: A Follow-up Study," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 17(02), pages 41-51, August.
    3. Christa Hainz & Lars Hornuf & Lisa Nagel & Sarah Reiter & Eliza Stenzhorn, 2019. "Die Befreiungsvorschriften des Kleinanlegerschutzgesetzes: Eine Follow-up-Studie," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 72(09), pages 26-37, May.

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    More about this item

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • K12 - Law and Economics - - Basic Areas of Law - - - Contract Law
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law

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