European Commission passes delegated acts regarding regulatory technical standards related to ECSPR
On 13 July 2022 the European Commission has passed delegated acts with regard of all outstanding regulatory technical standards as provided by ESMA and EBA and related to ECSPR. All delegated acts are subject to a three months review period. EUROCROWD welcomes the timely approval of the technical standards without significant changes. This will allow crowdfunding service providers to fully embrace ECSPR and to finalise their licensing.
The topics signed off relate to:
- requirement and arrangements for the application for authorisation
- entry knowledge test and the simulation of the ability to bear loss for prospective non-sophisticated investors
- individual portfolio management of loans
- methodology for calculating default rates of loans
- requirements, standard formats and procedures for complaint handling
- key investment information sheet
- conflict of interest requirements
- measures and procedures for business continuity plans
- the exchange of information between competent authorities
Jointly with the extended transition period, European crowdfunding service providers or those intended to becoming one, have now sufficient clarity on the legal requirements and arrangements around the ECSPR license. Given that already first ECSPR licenses have been given out, we welcome this clarification and expect a rapid uptake of those actors in the market ready to roll out their pan European operations.