ESMA Updates Address Crowdfunding Service Provider Regulation
The European Securities and Markets Authority (ESMA) updated the set of questions and answers (Q&A) on the European crowdfunding service provider regulation (ECSPR). The Authority also published its Technical Advice to the European Commission on the possibility to extend the transitional period pursuant to Article 48(3) of ECSPR (Regulation 2020/1503). This final report containing the Technical Advice has been submitted to the European Commission on May 27, 2022.
The report is in response to a formal request (or mandate) from the European Commission and covers technical advice on the aspects referred to in Article 48(3) of the ECSPR, namely:
- application of the Regulation to crowdfunding service providers that provide crowdfunding services only on a national basis
- impact of the Regulation on the development of national crowdfunding markets and on access to finance
- relevance of extending the transitional period
The crowdfunding service providers that provide their services only on a national basis currently benefit from a transitional period that is set to expire on November 10, 2022. In its final report, ESMA discusses the application of the Crowdfunding Regulation to these service providers as well as the relevance of extending the transitional period set out in Article 48. In this context, ESMA expresses concerns with the potentially detrimental consequence an absence of extension of the transitional period could have on some national crowdfunding markets. ESMA would also like to mention investor protection and convergence concerns that may arise from the extension of the transitional period. Therefore, to avoid that any extension unnecessarily delays the transition to the crowdfunding regulation, ESMA suggests to the European Commission to explore the possibility of applying this extension to crowdfunding service providers that currently operate only on a national basis and have duly applied for authorization prior to October 01, 2022. ESMA strongly encourages European crowdfunding service providers currently operating under national law to accelerate their transition to the regime deriving from Crowdfunding Regulation by filing relevant applications to their national competent authority as soon as possible.
Related Links
- Press Release on Q&A
- Press Release on Transitional Period for Crowdfunding Providers
- Report on ESMA Technical Advice (PDF)
Keywords: Europe, EU, Banking, Q&A, Crowdfunding Service Providers, Crowdfunding Regulation, Lending, Credit Risk, ECSPR, Transitional Arrangements, ESMA, EC
Previous Article
EIOPA Examines Physical Climate Risk Exposure, SII Non-ComplianceRelated Articles
OSFI Issues Phase2 Consultation on Climate Scenario Exercise for Banks
The Office of the Superintendent of Financial Institutions (OSFI) recently announced a consultation on the second phase of the Standardized Climate Scenario Exercise (SCSE) for banks and other financial institutions it regulates in Canada.
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.