Industry response to ESMA consultation
EUROCROWD, on behalf of its diverse European membership, does fully support the work of ESMA and remains available for open technical discussions and feedback on operational aspects of professional crowdfunding platforms, both those with existing experience in cross border business and those seeking to establish this under ECSPR. Having supported the development of ECSPR over the past four years, we feel that the work by ESMA is reflecting the spirit and intention of the European legislators. On 28 May 2021 the open consultation of ESMA closes for public submissions and we encourage all stakeholders to submit.
Download our response here
We, together with our members seek, however, clarification on a number of aspects outlined within our response to ESMA. We would like to reiterate the importance of good and fast implementation of ECSPR by EU Member States, with as little regulatory competition as possible. This is important with regard to consumer protection within a harmonised market providing access to investment opportunities in 27 Member States. Unnecessary complication toward the individual investor should be avoided. It is also important to enable small and medium sized businesses, the majority of European businesses, to gain access to new forms of investment and liquidity, especially in times of economic stress following COVID.
We understand that ESMA has an important task in providing guidance to Member States, but also that it is ultimately Member State authorities that have the final responsibility in correctly implementing ECSPR for their citizens and business, enabling wealth creation, innovation and economic growth. We therefore see our response to ESMA as supportive, highlighting especially those aspects that we believe may create significant hurdles in the market if not clarified.
EUROCROWD understands that there might be issues specific to existing business models within specific Member States, which we have encouraged to be put forward by affected market actors, but that we feel cannot be adequately addressed other than on Member State level. We urge the sector to seek close contact with the national conduct authorities in helping to provide answers for such issues. As a European network, it is beyond our scope to intervene in 27 Member States. We are however, supporting relevant activities of our members in Member State discussions and are looking forward to support national if and where possible. You can also watch recordings of our online events on this topic from our 9th Crowdfunding Convention and CrowdTuesday.