Business Lawyering in the Crowdfunding Era

Abstract

The advent of crowdfunding (and crowdfund investing, in particular) has put strain on business lawyering. This paper identifies and comments on professional responsibility and professionalism issues in the current rapidly changing business finance and regulatory environment -- an environment in which crowdfunded businesses and projects have become a reality. Traps for the unwary exist in a number of areas ranging from the unlicensed practice of law, through matters of competence and diligence, to compliance with a lawyer's public duties. By appreciating these issues and being attentive to these observations, legal counsel should be better able to engage in productive, valued, ethical lawyering in the crowdfunding era and beyond.

Keywords: crowdfunding, securities, investing, lawyering, professional responsibility, professionalism, model rules, unauthorized practice, competence, diligence

JEL Classification: K20, K22, K23, K30, K40, M10, M13