NEWS

EU Crowdfunding Regulations

What Does it Mean for Crowdfunding Service Providers?

The recently introduced EU Crowdfunding Regulations will apply across the EU 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 (equity) crowdfunding or peer-to-peer business lending via its platform will need to be authorised/licensed in the EU and “passport” their licence to the rest of the EEA i.e. similar to provision of payment services and provide services in the EEA.

If your CSP is established outside of the EU and wishes to continue to provide services to customers to or market (via the internet or other means) in the EEA you are required to establish an entity in the EU and apply for a CSP Licence from an EU Authority. If your Firm is already established within the EU; your Firm is required to adopt the new EU 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 licensing and/or EU establishment! Please contact us today to discuss the possible implication of the Regulations for your business.

Joe Lavelle FCA

Joe Lavelle (joe@joelavelle.ie) is co-founder and Managing Director of Lavelle Consulting Ltd a boutique multidisciplinary financial services regulatory compliance Consultancy Firm. He writes on Fintech incubators and opportunities for global FINTECH entities. A Chartered Accountant and Financial Services Regulatory Compliance Consultant (specialising in the payments services, e-money, crowdfunding sectors) Joe also specialises in successfully establishing FinTech entities in Ireland, the UK and EEA as authorised non-bank financial institutions.

Contact: info@lavelleconsulting.ie;

ph: +353 1 6696001