Those on the Rosfinmonitoring list will be prohibited from raising capital through crowdinvesting

On July 23, 2019, the State Duma approved the text of the bill on crowdinvesting.

On July 23, 2019, the State Duma adopted in the second reading the bill "On attracting investments using investment platforms and on amending certain legislative acts of the Russian Federation". It defines the rules for investing and attracting investments through crowdinvesting (a way to raise capital in start-ups from a wide range of micro-investors).

Among other things, it is planned to prohibit everyone included in the list of extremists and terrorists and in the list of persons involved in the proliferation of weapons of mass destruction (both lists are maintained by Rosfinmonitoring) from becoming operators of investment platforms, to dispose of more than 10% of the voting shares of such an operator and to be its director or board member. In addition, the persons on both lists will be prohibited from attracting investments through crowdinvesting platforms.

It should be noted that the list of Rosfinmonitoring includes convicts, as well as those accused and suspected of involvement in extremist and terrorist activities.

Sources

• Bill No. 419090-7. On attracting investments using investment platforms and on amending certain legislative acts of the Russian Federation // CREATION GAS "Lawmaking". 2019. July 23.