EU Crowd Funding Regulations 2021
Joe Lavelle BA FCA DipRisk
Chartered Accountant, Post Grad Dip Risk, Compliance & IA; CFO, CCO, MLRO, HOIA & INED; Economics Graduate & Financial Services Regulatory Compliance Consultant; Central Bank of Ireland Control Functions: PCF-2; PCF-13
The EU Crowdfunding Regulations will apply from 10 November 2021 to providers of two key types of crowdfunding: investment-based crowdfunding, and peer-to-peer lending.
A Crowd Service Provider “CSP” that facilitates either investment-based crowdfunding or peer-to-peer business lending via its platform is required to be authorised by the national competent authority (NCA) in the EU Member State in which it is established e.g. the Central Bank of Ireland “CBI” is the NCA in Ireland; post authorisation your CSP can “passport” the CSP licence throughout the EEA i.e. similar to the passporting of the provision of payment services throughout EEA.
If your CSP is established outside of the EU and wishes to continue to provide services in the EEA you are required to establish in the EU and apply for a CSP Licence from an EU Authority in accordance with the Regulations. If your Firm is already established within the EU your Firm is required to adopt the EU CSP Regulations and seek regulatory licence authorisation in accordance with the Regulations.
Lavelle Consulting are working with a number of EU/non-EU CSP Firms with regards to EU CSP and Payment Services licensing. Please feel free to reach out for a free consultation: [email protected]