The frontier can sometimes be very thin between financial advice and placement.

In their joint position DOC-2014-10 dated 6 September 2019, the two French authorities, the AMF and ACPR, have clarified the two main conditions which crowdfunding platforms (i.e., crowdfunding investment advisers or investment services providers licensed to provide financial advice services) should comply with in order not to trigger the placement without a firm commitment basis investment service, i.e.:

  • be performed through a progressive-access website, i.e. a website where Internet users may, on the one hand, register and agree to the risks they undertake to gain access to details of the securities offerings, and on the other, answer questions before subscribing concerning their experience, knowledge of finance, family situation, assets, professional status and investment objectives; and
  • prevent active solicitation or marketing activities for a specific operation.