| Author (Corporate) | Council of the European Union, European Parliament |
|---|---|
| Series Title | Official Journal of the European Union |
| Series Details | L 347, Pages 1-49 |
| Publication Date | 20/10/2020 |
| Content Type | Legislation |
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Summary: Regulation (EU) 2020/1503 adopted by the co-legislators on 7 October 2020 on European Crowdfunding Service Providers (ECSP) for Business. It amends Regulation (EU) 2017/1129 and Directive (EU) 2019/1937. This is text with EEA relevance. Further information: Crowdfunding improves access to funding especially for start-ups and other small businesses. A start-up can present its project on an online platform and call for support in the form of a loan ('peer-to-peer lending') or equity. Investors receive a financial return for their investment. The proposal aims at making it easier for crowdfunding platforms to offer their services across the European Union (EU) and improve access to this form of finance for businesses in need of funding. The initiative allows platforms to apply for an EU label, based on a single set of rules. Investors on crowdfunding platform are protected by clear rules on information disclosures, rules on governance and risk management, and by a coherent approach to supervision. Initial input for this legislative initiative on crowdfunding was gathered during preparatory work, notably during the implementation of the Capital Markets Union (CMU) Action Plan, the public consultation on the CMU Mid-term review and the consultation on FinTech. The draft law was adopted on 8 March 2018, as part of a legislative package relating to FinTech and the completion of the Capital Markets Union. The European Parliament's approved in first reading its position on the proposal on 27 March 2019 and allowed for interinstitutional negotiations on 23 September. The Council of the European Union adopted its negotiating position on 26 June. An informal agreement between the co-legislators on a compromise text was reached on 18 December. The Council endorsed it on 20 July 2020, followed by the Parliament on 6 October. The Act was signed by the co-legislators on 7 October 2020 and published by the Official Journal on 20 October. |
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| Source Link | Link to Main Source http://data.europa.eu/eli/reg/2020/1503/oj |
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| Subject Categories | Business and Industry, Economic and Financial Affairs |
| Subject Tags | Capital Markets Union [CMU] |
| Keywords | Crowdfunding |
| International Organisations | European Union [EU] |
