×
ECR

Regulation of the EU crowdfunding sector backed by MEPs

28 March 2019

Regulation of the EU crowdfunding sector backed by MEPs

New rules providing the first EU-wide regulation of the crowdfunding sector have been approved today by MEPs. Led through the European Parliament by ECR MEP Ashley Fox, the legislation introduces common regulations and standards that crowdfunding service providers (CSPs) can opt into. Currently, separate national rules limit cross-border activity.

It also creates a European passport for CSPs, providing protection for both investors and those seeking to raise finance.

Mr Fox said: “Crowdfunding is becoming an important source of funding for small businesses and micro-enterprises across the EU.

This legislation is big step towards helping achieve its full potential.” Different levels of regulation will apply to platforms depending on the complexity of their operations. Service providers will be required to give clients clear information about the risks of their investments and there are provisions to address conflicts of interest and complaints.

National authorities remain responsible for authorising and supervising CSPs, with the European Securities and Markets Authority assuming a mediation role. Although not included in today’s report, MEPs have asked ask the European Commission to come forward with new legislative proposals on the regulation of initial coin offerings – a type of crowdfunding which often involves cryptocurrencies.

Mr Fox said: “Approval today means that negotiations with European Council and Commission can begin after the European elections in May, with the aim of the legislative process being completed by the end of the year.”

The crowdfunding regulation is the first to emerge from the European Commission’s Action Plan, aimed at harnessing technological innovation in financial services.

SHARE

ECR

OUR TWEETS

Raffaele Fitto

2 days ago

As co-chair I congratulate @Conservatives who is part of the big family @ecrgroup Best wishes for a successful job… twitter.com/i/web/status/1…

ECR Group

3 days ago

Congratulations to the @Conservatives @BorisJohnson & our UK @ConMEPs - fantastic result!! We know this means… twitter.com/i/web/status/1…

ECR Group

4 days ago

"Europe needs #trade with #Israel & vice versa. We have a lot to offer each other. But unfortunately, many opportun… twitter.com/i/web/status/1…

ECR Group

4 days ago

The EU can have all the ambition in the world but it will all be for nothing unless we find a way that can actually… twitter.com/i/web/status/1…

ECR Group

4 days ago

🌍 Starting in an hour - our members take the floor to call for a credible & achievable #GreenNewDeal - watch here👇 twitter.com/Europarl_EN/st…

ECR Group

11 days ago

'It's not the first time France has misjudged the value of maintaining the transatlantic alliance. To repeat the sa… twitter.com/i/web/status/1…

ECR Group

11 days ago

We have been saying this for years – there is a completely different view of the EU in communities across our Membe… twitter.com/i/web/status/1…

ECR Group

12 days ago

MEP @BeataSzydlo on our conference on the #childGuarantee: "Fighting child poverty and social exclusion of children… twitter.com/i/web/status/1…

ECR Group

13 days ago

Starting now - our conference on the #childGuarantee where we'll be discussing different instruments to combat chil… twitter.com/i/web/status/1…

ECR Group

13 days ago

🚨The @EP_Environment committee finally agrees to our request for an official study into the @Europarl_EN ‘s carbon… twitter.com/i/web/status/1…





© 2018. All rights reserved. European Conservatives and Reformists Group