EC Adopts Delegated Regulations for Crowdfunding Service Providers
The European Commission (EC) adopted a Delegated Regulation under the European crowdfunding service providers for business (Crowdfunding Regulation hereafter), proposing to extend the transition period by 12 months, until November 10, 2023, for firms providing crowdfunding services in accordance with the national law. The regulation will be applicable from November 11, 2022 and shall enter into force following its publication in the Official Journal of the European Union. Additionally, EC adopted 11 Delegated and Implementing Regulations (consisting of seven sets of regulatory technical standards and four sets of implementing technical standards under the Crowdfunding Regulation.
The aforementioned delegated and implementing regulations shall enter into force on the twentieth day following their publication in the Official Journal of the European Union. The regulations relate to the:
- data standards and formats, templates, and procedures for reporting information on projects funded through crowdfunding platforms.
- the standard forms, templates and procedures for the notifications of national marketing requirements applicable to crowdfunding service providers by competent authorities to European Securities and Markets Authority (ESMA).
- the requirements, standard formats and procedures for complaint handling.
- standard forms, templates and procedures for the cooperation and exchange of information between competent authorities and ESMA.
- the entry knowledge test and the simulation of the ability to bear loss for prospective non-sophisticated investors in crowdfunding projects.
- the methodology for calculating default rates of loans offered on a crowdfunding platform.
- the measures and procedures for crowdfunding service providers’ business continuity plan.
- conflicts of interest requirements for crowdfunding service providers.
- the key investment information sheet.
- individual portfolio management of loans by crowdfunding service providers, specifying the elements of the method to assess credit risk, the information on each individual portfolio to be disclosed to investors, and the policies and procedures required in relation to contingency funds.
- the exchange of information between competent authorities in relation to investigation, supervision and enforcement activities.
Related Links
- Regulation on Extension of Transitional Period (PDF)
- Regulation on Reporting Information on Projects Funded
- Regulation on National Marketing Requirements (PDF)
- Regulation on Key Investment Information Sheet (PDF)
- Regulation on Cooperation and Exchange of Information (PDF)
- Regulation on Complaints Handling (PDF)
- Regulation on Entry Knowledge Test (PDF)
- Regulation on Loan Default Rate Calculation (PDF)
- Regulation on Business Continuity Plan (PDF)
- Regulation on Conflicts of Interest (PDF)
- Regulation on Individual Portfolio Management of Loans (PDF)
- Regulation on Exchange of Information Between Competent Authorities (PDF)
Keywords: Europe, EU, Banking, Crowdfunding Regulation, Crowdfunding Service Providers, Regulatory Technical Standards, Implementing Technical Standards, Lending, Credit Risk, ESMA, EC
Related Articles
EBA Launches Stress Tests for Banks, Issues Other Updates
The European Banking Authority (EBA) launched the 2023 European Union (EU)-wide stress test, published annual reports on minimum requirement for own funds and eligible liabilities (MREL) and high earners with data as of December 2021.
EBA Proposes Standards for IRRBB Reporting Under Basel Framework
The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.
FED Issues Further Details on Pilot Climate Scenario Analysis Exercise
The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
CBIRC Revises Measures on Corporate Governance Supervision
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
