Kevin Smith: “Clerks III” will be my last writing/directing effort






LOS ANGELES (TheWrap.com) – “Clerks III” will be Kevin Smith‘s last writing/directing effort, the filmmaker tweeted on Friday morning:


“So with the ‘HIT SOMEBODY‘ shift, the minute Jeff Anderson signs on, my last cinematic effort as a writer/director will be ‘CLERKS III’”






Referring to the ice-hockey comedy he’s writing that takes place over the course of 30 years, the “shift” means now it will be not a theatrical release but a television mini-series.


“Since ‘HIT SOMEBODY’ is now gonna be a mini-series,” the 42-year-old wrote. “Yes – that leaves room for a new final flick before I retire from directing feature films.”


So pending the participation of Anderson, the actor who played Randal Graves in the first two “Clerks” films, Smith’s fans will get the ultimate goodbye gift – a complete trilogy for the convenient store comedy franchise.


The first installment was the director’s mirco-budgeted breakthrough independent film, which launched characters Jay and Silent Bob into pop culture and led to four more spinoffs.


Minimum-wage earners Randal and Dante (Brian O’Halloran) were featured in a series of “Clerks” comics in the late ’90s before becoming the focus of a short-lived animated television series in 2000 (and eventually making it back to the big screen for a quick cameo in 2001′s “Jay and Silent Bob Strike Back”). Smith finally finished their story in 2006′s “Clerks II.”


Or so we thought. Apparently, he wants to end his film-directing career with the characters and actors that helped it begin. However, the tweet heard around the world of cinema suggests it may be somewhat of a challenge to persuade at least one half of the “Clerks” duo to come aboard.


Beyond “Hit Somebody” and “Clerks III,” Smith will keep himself busy with “SModcast,” a weekly podcast, and AMC’s “Comic Book Men,” which has been renewed for a second season.


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Health workers march in Spain’s capital against cuts, reforms






MADRID (Reuters) – Thousands of health workers, on strike since last month, marched on Sunday in Madrid to protest against budget cuts and plans from the Spanish capital’s regional government to privatize the management of public hospitals and medical centers.


It was the third time doctors, nurses and health workers have rallied since the local authorities put forward a plan in October to place six hospitals and dozens of medical practices under private management. The plan also calls for patients to be charged a fee of 1 euro for prescriptions.






Workers launched an indefinite strike last month against the plan, which has not been endorsed by the centre-right government of Prime Minister Mariano Rajoy. Health workers in the capital are striking Monday-Thursday each week and seeing patients only on Fridays, while also responding to emergencies.


Spain’s 17 autonomous regions control health and education policies and spending. They have all had to implement steep cuts this year as the country struggles to meet tough European Union-agreed deficit targets.


Dressed in white scrubs, the protesters shouted slogans such as “Health is not for sale” and “Health 100 percent public, no to privatizations”.


“Of course, privatization can be reversed. Actually the question is not if it can be reversed, because privatization should never have a future,” said Luis Alvarez, an unemployed man from Madrid attending the demonstration.


Belen Padilla, a doctor at Madrid’s hospital Gregorio Maranon, said one million citizens had already signed a petition rejecting the plan.


(Reporting by Reuters Television; Writing by Julien Toyer; Editing by Peter Graff)


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Exclusive: U.S. authorities probe SAC for Weight Watchers – sources












(Reuters) – U.S. authorities are investigating Steven A. Cohen’s SAC Capital Advisors hedge fund for possible insider trading in the shares of the popular diet company Weight Watchers International Inc, according to people familiar with the matter.


The investigation focuses on trading in Weight Watchers shares in the first half of 2011, when SAC Capital had taken a sizeable position in the stock, and potentially could implicate the billionaire hedge fund manager, the sources said on Friday.












Regulatory filings show that Cohen’s $ 14 billion fund briefly held 2.1 million shares in Weight Watchers during the period under scrutiny by authorities – at which time the diet company’s stock price roughly doubled.


The inquiry is in its early stages and it is not clear whether anything improper was done either by SAC Capital or Cohen himself, said the people familiar with the matter, who requested anonymity. The trading in Weight Watchers would be permissible as long as it was based on fundamental research or derived from individuals who did not have access to non-public corporate information.


An SAC Capital spokesman said the firm was not aware of any investigation involving Weight Watchers. A spokeswoman for Manhattan U.S. Attorney Preet Bharara declined to comment. A spokesperson for Weight Watchers did not immediately respond to a request for comment.


The new line of pursuit ratchets up pressure on Cohen, 56, one of the hedge fund industry’s most successful and best-known managers. The spotlight the probe casts on SAC Capital and Cohen could further rattle the hedge fund’s investors, who account for roughly 40 percent of the firm’s capital.


Two weeks ago, U.S. prosecutors charged a former SAC Capital employee, Mathew Martoma, with using inside information to generate profits and avoid losses totaling $ 276 million in shares of two drug stocks. The U.S. Securities and Exchange Commission also has formally warned SAC Capital that the firm could face civil charges.


A number of SAC’s investors have said they have not made a decision on whether to redeem money from the firm. Investors have until mid-February to put in a redemption notice.


Martoma has not entered a plea but his lawyer has said he expects to be exonerated. SAC has declined to comment beyond saying, “Mr. Cohen and SAC are confident that they have acted appropriately.”


Martoma is the seventh former SAC Capital employee to be charged or implicated by federal authorities for insider trading. The criminal complaint against Martoma, who last worked for CR Intrinsic, an affiliated fund of SAC Capital in 2010, for the first time alleges that Cohen personally approved the decision to sell-out of a big stake the hedge fund had in shares of Elan Corp and Wyeth, now part of Pfizer Inc.


Separately, U.S. authorities are also investigating SAC for suspicious trading in shares of biotech company InterMune Inc. in 2010, according to one of the people familiar with the probes. Officials at InterMune weren’t immediately available for comment. The SAC spokesman declined to comment on the InterMune investigation.


Federal authorities have not charged Cohen, whose net worth is estimated by Forbes at about $ 8.8 billion as of September this year. The hedge fund manager has told his investors and 900 employees that neither he nor the firm has done anything improper in response to Martoma’s arrest.


It’s not clear what has prompted federal authorities to look into Stamford, Conn.-based SAC Capital‘s trading in shares of Weight Watchers. One of the people familiar with the investigation said authorities are looking at trading that both booked hefty profits and avoided losses for SAC Capital.


BIG MOVE INTO WEIGHT WATCHERS


Over his 20 years in the business, Cohen has emerged as one of the pioneers of sophisticated trading. His funds, which charge some of the highest fees in the $ 2 trillion industry, has boasted an average annual return of 30 percent since launch in 1992.


This year, SAC Capital‘s main fund is up about 12 percent, compared to the industry average of just over 5 percent. SAC Capital‘s only down year was in 2008, when it lost 19 percent of its value.


Cohen has endured federal authorities looking into trading at his firm for about five years now. The investigation into SAC Capital ran parallel with the federal government’s undercover investigation that led to the October 2009 arrest of Galleon founder Raj Rajaratnam, who was convicted by a federal jury on May 2011 on 14 counts of insider trading.


SAC Capital‘s big move into Weight Watcher’s stock in early 2011 gained attention in part because it came at a time that the once-heavyset Cohen had lost about 20 pounds. (It’s not clear if he used Weight Watchers.) The trader has said he lost the weight to help with a chronic bad back.


A first quarter 2011 regulatory filing for SAC Capital showed the firm had acquired 2.1 million shares of the stock. But by the end of the next quarter, a subsequent filing revealed the hedge fund had unloaded nearly all of those shares.


It is not uncommon for a rapid-fire trading firm like SAC Capital to move in and out stocks – even big positions. SAC Capital, in particular, is not known for holding stocks for a long time.


SAC Capital’s trading strategy relies on analysts and portfolio managers gathering information about a company’s prospects before making a trading decision. Cohen has told people privately he believes his firm has drawn unwanted scrutiny from the government because of its long history of success.


Cohen has become an avid art collector in recent years, with a number of Jeff Koons sculptures gracing the grounds of his 30-room mansion in Greenwich, Conn.


Cohen, who grew up on Long Island in Great Neck, New York, is also pursuing the kind of charitable legacy building done by other famous Wall Street money managers. In 2010, the North Shore-LIJ’s pediatric hospital was renamed the Steven and Alexandra Cohen Children’s Medical Center of New York, after Cohen and his second wife in recognition of their donations.


More recently, he took a minority ownership stake in the New York Mets baseball team after failing to win the rights to buy another team, the Los Angeles Dodgers.


(Reporting by Matthew Goldstein, Jennifer Ablan and Emily Flitter; Editing by Tiffany Wu and Bernard Orr)


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Election underscores Ghana’s democratic reputation












ACCRA, Ghana (AP) — Voters in Ghana selected their next president Friday in a ballot expected to mark the sixth transparent election in this West African nation, known as a beacon of democracy in a tumultuous region.


Proud of their democratic heritage, residents of this balmy, seaside capital trudged to the polls more than four hours before the sun was even up, standing inches apart in queues that in some places stretched 1,000-people deep.












By afternoon, some voters were getting agitated, after hitches with the use of a new biometric system caused delays at numerous polling stations.


Each polling station had a single biometric machine, and if it failed to identify the voter’s fingerprint, or if it broke down, there was no backup. At one polling station where the machine had broken down, a local chief said he’d barely moved a few inches: “I’m 58 years old, and I’ve been standing in this queue all day,” Nana Owusu said. “It’s not good.”


Late Friday, when it became clear that large numbers of people had not been able to vote, the election commission announced it would extend voting by a second day. This nation of 25 million is, however, deeply attached to its tradition of democracy, and voters were urging each other to remain calm while they waited their turn to choose from one of eight presidential contenders, including President John Dramani Mahama and his main challenger, Nana Akufo-Addo. The election commission


“Elections remind us how young our democracy is, how fragile it is,” said author Martina Odonkor, 44. “I think elections are a time when we all lose our cockiness about being such a shining light of democracy in Africa, and we start to get a bit nervous that things could go back to how they used to be.”


Ghana was once a troubled nation that suffered five coups and decades of stagnation, before turning a corner in the 1990s. It is now a pacesetter for the continent’s efforts to become democratic. No other country in the region has had so many elections deemed free and fair, a reputation voters hold close to their hearts.


The incumbent Mahama, a former vice president, was catapulted into office in July after the unexpected death of former President John Atta Mills. Before becoming vice president in 2009, the 54-year-old served as a minister and a member of parliament. He’s also written an acclaimed biography, recalling Ghana’s troubled past, called “My First Coup d’Etat.”


Akufo-Addo is a former foreign minister and the son of one of Ghana’s previous presidents. In 2008, Akufo-Addo lost the last presidential election to Mills by less than 1 percent during a runoff vote. Both candidates are trying to make the case that they will use the nation’s oil riches to help the poor.


Besides being one of the few established democracies in the region, Ghana also has the fastest-growing economy. But a deep divide still exists between those benefiting from the country’s oil, cocoa and mineral wealth and those left behind financially.


A group of men who had just voted gathered at a small bar a block away from a polling station in the middle class neighborhood of South Labadi. Danny Odoteye, 36, who runs the bar, said that the country’s economic progress is palpable and that the ruling party, and its candidate, are responsible for ushering in a period of growth.


“I voted for John Mahama,” he said. “Ghana is a prosperous country. Everything is moving smoothly.”


Administrator Victor Nortey, sitting on a plastic chair across from him, disagreed, saying the country’s newfound oil wealth should have resulted in more change.


“I voted for Nana Akufo-Addo,” He said. “Now we have oil. What is Mahama doing with the oil money?” Nortey said. “We can use that money to build schools.”


In an interview on the eve of the vote, Akufo-Addo told The Associated Press that the first thing he will do if elected is begin working on providing free high school education for all. “It’s a matter of great concern to me,” he said, adding that he plans to use the oil wealth to educate the population, industrialize the economy and create better jobs for Ghanaians.


Policy-oriented and intellectual, Akufo-Addo is favored by the young and urbanized voters. He was educated in England and comes from a privileged family. The ruling party has depicted him as elitist.


“The idea that merely because you are born into privilege that automatically means you are against the welfare of the ordinary people, that’s nonsense,” he said.


Ghana had one of the fastest growing economies in the world in 2011. Oil was discovered in 2007 and the country began producing it in December 2010.


Throughout the capital, new condominiums are rising up next to slums and luxury cars creep along narrow alleys lined with open sewers. A mall downtown features a Western-style cinema and is packed on weekends with middle class families. At the same time shantytowns are cropping up, packed with the urban poor.


Polls show that voters are almost evenly split over who can best deliver on the promise of development.


Kojo Mabwa said that he is voting for Akufo-Addo, because he is impressed by his promise of free education. He dismissed critics that say the project is too ambitious. “There is money,” he said. “(The ruling party) has done nothing for us. They are misusing our money.”


Paa Kwesi, a 30-year-old systems analyst, said he doesn’t think Akufo-Addo is making promises he can keep.


“He says he can do free education, but you have to crawl before you can walk. It’s not possible,” he said.


__


Associated Press writer Francis Kokutse contributed to this report from Accra, Ghana.


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Zynga seeks real-money gambling license in Nevada












SAN FRANCISCO (Reuters) – Social games maker Zynga Inc said on Wednesday it filed a preliminary application to run real-money gambling games in Nevada, a significant step in cracking a complex but potentially massive new market that could resuscitate its faltering business.


The Nevada Gaming Control Board will now examine whether Zynga is fit to hold a gaming license that would allow gamblers in the state to bet real money on the San Francisco-based company’s popular games like Zynga Poker, which currently involve only virtual chips with no monetary value.












Zynga is hoping that a lucrative real-money market could make up for a steep slide in revenue from its games like “FarmVille” and other fading titles that still generate the bulk of its sales.


“We anticipate that the process will take approximately 12 to 18 months to complete,” Zynga Chief Revenue Officer Barry Cottle said in a statement. “As we’ve said previously, the broader U.S. market is an opportunity that’s further out on the horizon based on legislative developments, but we are preparing for a regulated market.”


Zynga, along with many major gaming industry players, is hoping that a tide of proposed legislation to regulate gaming could sweep through states across the U.S. and open a massive new online market.


Nevada, Delaware and New Jersey are among the states that have moved or are moving toward interactive gaming after the U.S. Justice Department last year declared that only online betting on sporting contests was unlawful, presenting the opportunity for states to legalize some forms of online gambling, from lotteries to poker.


Although widespread legalization of online gaming in the United States appears years away at the minimum, obtaining a license in Nevada would be a meaningful foot in the door for Zynga’s nationwide aspirations.


Zynga has told investors in recent quarters that a concerted move into real-money gaming could represent a hefty – and badly needed – source of new revenue for the company, which has seen revenues sag and its stock plummet by more than three-quarters in the past year as gamers abandoned titles like “CityVille.”


In October, the company slashed its 2012 full-year earnings outlook for the second time and laid off employees to trim costs, while CEO Mark Pincus implored investors to give him time to turn around the company by pursuing initiatives like real-money gaming.


That month, Zynga struck a deal with bwin.party, a Gibraltar-based gaming company, to provide real money casino games like poker and slots in the United Kingdom beginning in the first half of 2013.


(Reporting By Gerry Shih; Editing by Chris Gallagher)


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Quentin Tarantino: if you think “Django Unchained” is violent, try slavery












LOS ANGELES (TheWrap.com) – If you think “Django Unchained” is violent, Quentin Tarantino has a historical reality check for you: Try slavery.


The “Pulp Fiction” auteur is back with an Antebellum revenge flick that according to early screenings pours on the blood and gore. Tarantino told an audience of British Academy of Film and Television Arts members on Thursday that if anything he spared the lash in his depiction of slavery, according to the Guardian.












“We all intellectually ‘know’ the brutality and inhumanity of slavery,” Tarantino said, “but after you do the research it’s no longer intellectual any more, no longer just historical record – you feel it in your bones. It makes you angry and want to do something … I’m here to tell you, that however bad things get in the movie, a lot worse shit actually happened.”


Tarantino’s comments indicate that he anticipates the irreverent “Django Unchained” – which opens on Christmas Day – will court controversy for setting its story against the backdrop of the slave trade.


The film centers on a bounty hunter (Christoph Waltz) who partners with a freed slave (Jamie Foxx) to take down a plantation owner, Calvin Candie (Leonardo DiCaprio) who controls his wife. Candie, who speaks with Magnolia-scented menace in the trailers, owns a mixed-race club in Greenville, Miss., and deals in slave-fights.


Perhaps because the film features Tarantino’s trademark sardonic humor, some early viewers have compared “Django Unchained” to the works of Mel Brooks.


“Just watched what was basically a three-hour homage to BLAZING SADDLES,”@LouLumenick tweeted.


But despite the humor, in an interview with Howard Stern this week, Tarantino indicated that he took the responsibility of depicting slavery very seriously. In particular, he said that shooting a scene where a female slave is brutalized brought him to tears and deeply impacted the crew.


“It was early on in the production, and it was the first time we started officially dealing with that kind of ugliness,” Tarantino said. “We later got used to dealing with that kind of ugliness. But that first – it was traumatizing to everybody, none less because of the fact that we were doing it in the real slave area of a real plantation where the slaves lived.


“This actually happened on the grounds,” he added. “There was blood in that ground. Those trees had memories of everything that happened there. We could feel the spirits of the old slaves on the property.”


Of course, Tarantino has taken on controversial subjects before. He turned an ultra-violent and satiric eye at the Nazis and an SD colonel nicknamed the “Jew Hunter” and turned it into “Inglourious Basterds.” Dealing with charges of insensitivity, it nonetheless collected over $ 300 million worldwide and was nominated for a Best Picture Oscar.


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S.Africa’s Mandela admitted to hospital for tests












JOHANNESBURG (Reuters) – Former South African president Nelson Mandela was admitted to hospital on Saturday for medical tests, although the government said there was no cause for alarm.


A statement from President Jacob Zuma‘s office gave no details of the condition of the 94-year-old anti-apartheid leader.












Former President Mandela will receive medical attention from time to time which is consistent with his age,” the statement said.


President Zuma assures all that Madiba is doing well and there is no cause for alarm,” it added, referring to Mandela by his clan name.


Mandela, who became South Africa‘s first black president after the country’s first all-race elections in 1994, was admitted to hospital in February because of abdominal pain but released the following day after a keyhole examination showed there was nothing seriously wrong with him.


He has since spent most of his time in his ancestral home in Qunu, a village in the impoverished Eastern Cape province.


His frail health prevents him from making any public appearances in South Africa, although in the last few months he has continued to receive high-profile visitors, including former U.S. President Bill Clinton.


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The Star is Dead. Her Film Isn’t












Three years after actress Brittany Murphy’s untimely death from pneumonia and anemia in 2009, her final film, an indie thriller called Something Wicked, finally completed post-production this week. The Eugene (Ore.) production company Merchant Films, which is currently seeking a distributor for the film, is caught in the unfortunate position of having to market a film without its most recognizable star. As of now, Merchant does not intend to include Murphy’s image in the main posters, says the movie’s writer and producer, Joe Colleran. Still, he says, many distributors have expressed interest in the past few days, and he is hoping for a spring 2013 release. Bloomberg Businessweek spoke with Colleran about how the filmmakers plan to manage in this difficult situation.


How have you had to change plans to market the film?
We did an original deal with Brillstein Entertainment Partners to represent the movie, and they have relationships with major studios. That hasn’t changed. What has changed is the time we delayed it to avoid exploitation. Normally it would be a two-year process. We shot it in Oregon, which takes longer than if you shoot it in Hollywood. The delay has been close to a year.












How will you walk that delicate line of promoting the film without being exploitative?
We don’t intend to run around marketing it as Brittany’s last movie. People know it is. I don’t think there’s any point in mentioning that any further. Her face is not on the key art. We will market it as a very suspenseful thriller. We’ll be marketing the genre of the movie. …You can go out virally, immediately [after her death] and build fan pages, and we didn’t. We thought that would be distasteful. We’re just starting that process now.


A lot of promoting the film involves doing interviews and red carpets.
That is a big difference. We won’t have [Brittany] promoting the movie nationally and internationally. We will not be able to have Brittany go on Letterman and Leno to do nationwide publicity, which she was excited to do. She was what they would have built the marketing campaign around. The other stars will have to replace her. The lead actress [Shantel VanSanten] is tremendous. They are very excited. They have larger responsibilities now, and they are anxious to promote it, because they really do look good in this movie.


Was the film altered after her death in any way?
No. There was only one scene she shot that was not in the film. It was one of the alternate endings. We’ll probably put it on the DVD so fans can see the different endings.


Tell me about finding a distributor for this film.
Genre movies—which are basically everything besides drama and comedy: action, thrillers, sci-fi—have a very loyal following. There’s a large segment of the younger audience, which is a key audience for distributors, that just goes to genre movies. The movie will probably get an R rating, which means the core audience will be 17 to 29, with a crossover of up to 34, because that’s what Brittany’s fan base is. That is the key audience that distributors go after, because they are easy to market to, they know where to find them, and they are frequent moviegoers.


Are you worried about critics?
Genre movies generally don’t tend to get critical acclaim anyway. Even if you’re a huge success like Twilight, critics trash it. Most critics don’t flock to genre movies. Fortunately, the audience we’re going after is not dependent on critics. They are dependent on word of mouth from their peers.


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Ghana election, test of democratic reputation












ACCRA, Ghana (AP) — Voters in Ghana were selecting their next president and a 275-seat parliament in elections Friday, solidifying the West African nation‘s reputation as a beacon of democracy in the region.


Some 14 million people are expected to turn out. President John Dramani Mahama, in office for only five months, is running against seven contenders. A former vice president, Mahama became president in July after the unexpected death of former President John Atta Mills. The 54-year-old is also a former minister and parliamentarian and has written an acclaimed biography, “My First Coup d’Etat.”












His main challenger is Nana Akufo-Addo, a former foreign minister and the son of one of Ghana’s previous presidents. The contender lost the 2008 election to Mills by less than 1 percent. Both men are trying to make the case that they will use the nation’s newfound oil wealth to help the poor.


Ghana, a nation of 25 million, is one of the few established democracies in the region as well as the fastest-growing economy. But a deep divide still exists between those benefiting from the country’s oil, cocoa and mineral wealth and those left behind financially.


In an interview on the eve of the vote, Akufo-Addo told The Associated Press that the first thing he will do if elected is begin working on providing free high school education for all. “It’s a matter of great concern to me,” he said, adding that he plans to use the nation’s oil wealth to educate the population, industrialize the economy and create better jobs for Ghanaians.


Policy-oriented and intellectual, Akufo-Addo is favored by the young and urbanized voters. He was educated in England and comes from a privileged family. The ruling party has depicted him as elitist, which Akufo-Addo calls “a little PR construct.”


“The idea that merely because you are born into privilege that automatically means you are against the welfare of the ordinary people, that’s nonsense,” he said.


Ghana had one of the fastest growing economies in the world in 2011. Allegations of corruption against the ruling party are rife.


Akufo-Addo said that if elected, he would not be able to weed out corruption in the government overnight.


“It’s a long fight,” he said. “But we build the institutions that can fight it.”


He said that in 30 years in politics he has never been accused of corruption.


Many analysts believe Mahama and Akufo-Addo are neck-and-neck.


Results are expected to be announced by Sunday, but could be delayed. If no one wins an absolute majority, a second round of voting will be held on December 28.


All candidates have signed a peace pact and have promised to accept the results of Friday’s poll.


Ghana, a nation of 25 million, has previously held five transparent elections in a row. Nearby Mali, which was also considered a model democracy, was plunged into chaos this March following a military coup.


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Associated Press writer Francis Kokutse contributed to this report from Accra, Ghana.


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Crowdfunding websites clamor for clearer regulation












LONDON (Reuters) – A new breed of internet-based financiers are calling for action to end regulatory uncertainty they say is preventing them from getting money to the small and medium-sized businesses that need it.


The so-called crowdfunding sector raises cash from members of the public to fund lending and investment. Regulators, however, have proved resistant to pleas for adjustments to rules that are tailored to more traditional markets.












“Operators of these platforms find it difficult to launch and flourish because existing EU and UK regulation does not fit the new models,” operators within the sector said in an open letter to EU and UK policymakers on Friday.


The plea coincides with a summit to discuss proposals for regulating a market that has developed in reaction to reduced bank lending to small and medium-sized enterprises because of tougher capital rules and greater regulatory scrutiny.


A host of alternative financing models have cropped up online, many allowing individuals to lend to, or invest in, companies with sums from as little as 10 pounds ($ 16). Massolution, a research and advisory firm specializing in the sector, says that 1.2 billion euros ($ 1.6 billion) was raised globally from crowdfunding last year.


Though some crowdfunding websites have tried to fit their operations within the existing regulatory framework, most remain largely outside it.


Part of the problem in drawing up appropriate regulation is the wide range of activities involved. Some offer debt, some equity, while others seek donations for charity or funding for creative projects in return for some non-financial reward.


With little or no expected returns from the latter, the main regulatory focus would be on equity crowdfunding and peer-to-peer lending.


As well as making sure that individuals are aware of the inherent risk involved with putting money in start-ups, the industry wants to avoid the risk of scams by ensuring that platforms vet businesses adequately.


LOST IN THE CROWD


Britain’s Financial Services Authority (FSA) warned in August that inexperienced investors should be aware of the risks in crowdfunding websites. A few days later United States securities regulators put crowdfunding at the top of their annual investment scams list.


Views differ about how to tackle these risks without stifling an increasingly important source of funding, and the matter is complicated by the varying rules already in place in different countries across Europe.


Measures taken by Seedrs, the only crowdfunding website to have received FSA approval, include requiring investors to pass a test to show that they understand the risks.


“It is hard to come up with a whole securities regulation; sometimes it does have to be a bit incremental and adaptive,” Seedrs founder Jeff Lynn said. “There is no question at all this is going to be a space that will continue to move.”


Some would like the operation of such platforms to be a distinct regulated activity, but others argue for smaller steps, such as a cap on the sums that people can invest or lend.


The British government, keen to improve the flow of finance to small businesses to boost the sluggish economy, has set up a working group to look at all aspects of policy on such sites.


The FSA said that it considers authorization of crowdfunding schemes case by case. The European Commission, meanwhile, is considered as so far having had a largely observational role.


Though the introduction of a separate regulated activity could still be some way off, the co-founder of peer-to-peer site Zopa, Simon Deane-Johns, believes that increased engagement with governments and regulators shows that things are moving in the right direction.


“Over the next year or two it should become progressively easier to set up a platform,” he said, “possibly through a combination of the FSA understanding more readily where things fit within the current regime and balancing that with some self-regulation.”


(Editing by Alexander Smith and David Goodman)


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