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.
- 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
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