Challenges of the Knowledge Society (Jun 2022)
EU CROWDFUNDING REGULATION
Abstract
Considering the recent application in all EU Member States of Regulation (EU) 2020/1503 of 7 October 2020 on European crowdfunding service providers for business (the “Regulation”), this article aims to address the main aspects and concepts which are to be used by small-medium enterprises (SMEs) and start-ups, in order to improve access to this innovative form of finance. The necessity of this legal analysis stems from the direct compulsoriness of the Regulation and from the increasing trend of innovative peer-to-peer economy, in which start-ups shall be able to efficiently support themselves by means of access to several investors whose purpose shall focalize on the potential financial growth of said start-up. The objectives of this study are to determine the grounds which led to the adoption of this Regulation, to identify the entities to whom the Regulation is destined for and who are allowed to provide crowdfunding services and to establish the differences between the concepts of “crowdfunding service” and “loan”. Additionally, this study shall address the obligation of crowdfunding service providers to perform annual reports to the competent authority that granted authorization and the conditions in which such authorizations may be withdrawn. Also, the article aims to clarify what the key investment information sheet must comprise.
