EU Crowdfunding Regulation Adopted

Mark RobertsPartner, Leman Solicitors

As anticipated in September, the EU Parliament has adopted the Crowdfunding Regulation. The regulation enters into force on 9 November 2020 and will apply from 10 November 2021. 

There is a detailed summary in my September post so I won’t repeat that here, but I have already seen a proposal from a client for which it should work nicely. 

Basically, this will suit any scenario where many investors are likely to be particularly interested in providing funding directly to certain types of business, or for a particular business purpose, across one or more borders within the EEA.  

Do let me know if we can help.

The regulation calls for the related funds flows to be handled under payment services regulation, and adds operational and prudential requirements related to lending and investment in securities.

https://thoughtleadership.leman.ie/post/102giwd/eu-crowdfunding-regulation-adopted?news&mc_cid=c6ba922851&mc_eid=c9fb37a3f9