Central Bank of Ireland Introduces Crowdfunding Regulatory Regime
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.
Related Links
- 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
Previous Article
IFSB Publishes FAQs on Islamic Finance StandardsRelated Articles
EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models
The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.
EP Reaches Agreement on Corporate Sustainability Reporting Directive
The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).
PRA Consults on Model Risk Management Principles for Banks
The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.
EC Regulation Amends Standards for Calculating Credit Risk Adjustments
The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
BIS Hub Updates Work Program for 2022, Announces New Projects
The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.
EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance
The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.
US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule
Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)
EIOPA Consults on Review of Securitization Framework in Solvency II
The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.
BIS Bulletins Discuss DeFi Lending and Aspects of Crypto-Assets
The Bank for International Settlements (BIS) published bulletins on lending in decentralized finance (DeFi) system, on blockchain scalability and fragmentation of crypto, and on extractable value and market manipulation in crypto and decentralized finance.
UK Authorities Issue Regulatory and Reporting Updates for Banks
The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.
