Call to protect crowdfunding investors

Recent scam puts spotlight on risks, possible safeguards such as mandatory disclosures

The relationship between the platform operator and the end investor is normally governed by the terms and conditions of their agreement.
The relationship between the platform operator and the end investor is normally governed by the terms and conditions of their agreement.PHOTO: ST FILE

In the light of a recent crowdfunding scam, we share our views on possible remedies for retail investors, and propose regulatory reforms to better protect such retail investors.

Earlier this year, it was discovered that $6.9 million worth of fake invoices were sold by Vanguard Project Management to investors on a Singapore crowdfunding site, Capital Springboard.

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A version of this article appeared in the print edition of The Sunday Times on October 07, 2018, with the headline 'Call to protect crowdfunding investors'. Subscribe