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.
- 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
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