The Central Bank of Ireland recently introduced the regulatory regime for crowdfunding service providers. The Statutory Instrument cited as the European Union (Crowdfunding) Regulations 2021 gives effect to the European Union Regulation 2020/1503 (also known as the Crowdfunding Regulation) and has appointed the Central Bank of Ireland as the designated competent authority for crowdfunding regulation in Ireland. The Central Bank also issued documents such as a set of questions and answers (Q&A) on the Crowdfunding Regulation and a consultation paper on crowdfunding marketing requirements.
The new regulatory framework for crowdfunding service providers under the Crowdfunding Regulation lays down uniform requirements for the provision of crowdfunding services, for the organization, for the authorization and supervision of crowdfunding service providers, for the operation of crowdfunding platforms, and for transparency and marketing communications in relation to the provision of crowdfunding services in the European Union. The Central Bank’s new regulatory framework covers two main types of crowdfunding—investment-based crowdfunding and peer-to-peer/loan-based crowdfunding. The new framework will require in-scope crowdfunding service providers to be authorized and be subjected to operational and prudential requirements as well as investor protection measures. The Central Bank has proposed to apply advertising rules to crowdfunding service providers, so that the Irish consumers receive the same protections in relation to advertising by crowdfunding service providers as is required for other financial service providers. The framework also sets out marketing requirements to ensure that information contained in any marketing communication must be fair, clear, and not misleading and consistent with the information contained in the Key Investment Information Sheet.
- Press Release on Crowdfunding Regulatory Framework
- Statutory Instrument - European Union (Crowdfunding) Regulations 2021
- Crowdfunding Regulations Q&A (PDF)
- Consultation Paper on Crowdfunding Marketing Requirements (PDF)
Keywords: Europe, Ireland, Banking, Crowdfunding, Crowdfunding Service Providers, Central Bank of Ireland, Lending, Loan Origination, Lending Marketplace
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