Featured Product

    EC Adopts Delegated Regulations for Crowdfunding Service Providers

    July 13, 2022

    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

    Keywords: Europe, EU, Banking, Crowdfunding Regulation, Crowdfunding Service Providers, Regulatory Technical Standards, Implementing Technical Standards, Lending, Credit Risk, ESMA, EC

    Related Articles

    EBA Finalizes Templates for One-Off Climate Risk Scenario Analysis

    The European Banking Authority (EBA) has published the final templates, and the associated guidance, for collecting climate-related data for the one-off Fit-for-55 climate risk scenario analysis.

    November 28, 2023 WebPage Regulatory News

    EBA Mulls Inclusion of Environmental & Social Risks to Pillar 1 Rules

    The European Banking Authority (EBA) recently published a report that recommends enhancements to the Pillar 1 framework, under the prudential rules, to capture environmental and social risks.

    October 31, 2023 WebPage Regulatory News

    BCBS Consults on Disclosure of Crypto-Asset Exposures of Banks

    As a follow on from its prudential standard on the treatment of crypto-asset exposures, the Basel Committee on Banking Supervision (BCBS) proposed disclosure requirements for crypto-asset exposures of banks.

    October 19, 2023 WebPage Regulatory News

    BCBS and EBA Publish Results of Basel III Monitoring Exercise

    The Basel Committee on Banking Supervision (BCBS) and the European Banking Authority (EBA) have published results of the Basel III monitoring exercise.

    October 18, 2023 WebPage Regulatory News

    PRA Updates Timeline for Final Basel III Rules, Issues Other Updates

    The Prudential Regulation Authority (PRA) recently issued a few regulatory updates for banks, with the updated Basel implementation timelines being the key among them.

    October 18, 2023 WebPage Regulatory News

    US Treasury Sets Out Principles for Net-Zero Financing

    The U.S. Department of the Treasury has recently set out the principles for net-zero financing and investment.

    October 17, 2023 WebPage Regulatory News

    EC Launches Survey on G7 Principles on Generative AI

    The European Commission (EC) launched a stakeholder survey on the draft International Guiding Principles for organizations developing advanced artificial intelligence (AI) systems.

    October 14, 2023 WebPage Regulatory News

    ISSB Sustainability Standards Expected to Become Global Baseline

    The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.

    September 18, 2023 WebPage Regulatory News

    IOSCO, BIS, and FSB to Intensify Focus on Decentralized Finance

    Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.

    September 18, 2023 WebPage Regulatory News

    BCBS Assesses NSFR and Large Exposures Rules in US

    The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.

    September 14, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8938