Date Published 25/11/2021
Update on the Crowd Funding Regime
On 10 November 2021, the Crowdfunding Regulation (ECSPR) became effective across the EU. Also on that date the European Securities and Markets Authority (ESMA), published a Final Report on technical standards (RTS and ITS) under the ECSPR. The report covers all of ESMA’s 12 mandates in this area, including 4 with a legal deadline of May 2022. As the ECSPR entered into force on 10 November 2021, ESMA decided to deliver on all its technical mandates simultaneously in order to provide indicative guidance to competent authorities and stakeholders.
The 12 standards in the report cover all investor protection aspects under the ECSPR, namely:
• Complaints handling;
• Conflict of interest;
• Business continuity plan;
• Authorisation;
• Information on default rate;
• Entry knowledge test and simulation of the ability to bear loss;
• Key investment information sheet;
• Cooperation between competent authorities;
• Reporting;
• Notification to ESMA of national provisions concerning marketing requirements;
• Cooperation between competent authorities; and
• Cooperation between competent authorities and ESMA
The draft technical standards have been submitted to the European Commission which will start the endorsement process.
Action: no action necessary.