Creativity in Microfinance
December 8th, 2005
John Berger said:
From a US perspective a membership club would probably not be a complete legal solution. From the SEC site [snip]…
John,
An MFM Membership Club does not have to be, nor will it likely be, an Investment Club. The type of club you cite is one that buys and sells regulated securities. It is, in effect, a buyer’s co-op for traditional stock and thereby falls under the regulations you cite. There are, however, a number of many centuries old culturally-based traditions for peer-based, family-based, community-based, person-to-person investment and informal banking that can certainly play a role in the MFM business model.
This is not about flying below the Patriot Act’s radar, it’s about extending the reach of person-to-person agreements and exchange. There is no reason that a person-to-person exchange network cannot scale. Remember, the world surely grew to significant scale long before there was institutionalized banking and regulated securities.
–Sohodojo Jim and Timlynn–
Entry Filed under: Entrepreneurial Community Ecosystems, MFM - MicroFinance Marketplace
Creativity in Microfinance
December 8th, 2005
John Berger said:
From a US perspective a membership club would probably not be a complete legal solution. From the SEC site [snip]…
John,
An MFM Membership Club does not have to be, nor will it likely be, an Investment Club. The type of club you cite is one that buys and sells regulated securities. It is, in effect, a buyer’s co-op for traditional stock and thereby falls under the regulations you cite. There are, however, a number of many centuries old culturally-based traditions for peer-based, family-based, community-based, person-to-person investment and informal banking that can certainly play a role in the MFM business model.
This is not about flying below the Patriot Act’s radar, it’s about extending the reach of person-to-person agreements and exchange. There is no reason that a person-to-person exchange network cannot scale. Remember, the world surely grew to significant scale long before there was institutionalized banking and regulated securities.
–Sohodojo Jim and Timlynn–
Entry Filed under: Entrepreneurial Community Ecosystems, MFM - MicroFinance Marketplace
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