ECSPR Monitor

With the full implementation of the Digital Operational Resilience Act (DORA) on January 17, 2025, crowdfunding platforms operating under the European Crowdfunding Service Providers Regulation (ECSPR) are now required to adopt stringent cybersecurity and operational resilience measures. This marks a significant step towards enhancing the protection of investors, safeguarding project owners, and securing the broader […]

The European Crowdfunding Service Provider Regulation (ECSPR) establishes a tailored framework for Crowdfunding Service Providers (CSPs), distinguishing them from traditional financial institutions and Non-Bank Financial Intermediaries (NBFIs). This distinction is crucial in understanding CSPs’ role within the financial ecosystem; CSPs are regulated by a bespoke European Law. The Position of CSPs under the ECSPR The

The Digital Operational Resilience Act (DORA), a cornerstone of the European Commission’s Digital Finance Package, aims to bolster the financial sector’s resilience against ICT-related risks. Recognizing the critical role of digital infrastructure in the financial ecosystem, DORA sets out comprehensive requirements for managing ICT risks, reporting incidents, and ensuring continuous operational resilience. For European Crowdfunding

The European Crowdfunding Service Providers Regulation (ECSPR) focuses on managing conflicts of interest to ensure transparency, fairness, and integrity in the crowdfunding industry. This is crucial for maintaining trust and supporting the success of fundraising SMEs. Conflict of interest policies are designed to prevent situations where the interests of the platform or its employees could

One of the central objectives of the European Crowdfunding Service Providers Regulation (ECSPR) is to establish clear rules and safeguards to protect investors using crowdfunding platforms. Below is a detailed, factual breakdown of the obligations imposed on crowdfunding service providers to ensure investor protection. Definition of Investor Under ECSPR, an investor is defined as any

The European Crowdfunding Service Providers Regulation (ECSPR) establishes clear requirements for authorizations, aiming to create a unified and secure crowdfunding environment across the EU. By mandating authorizations, the regulation ensures platforms operate within a controlled framework that promotes investor confidence and facilitates cross-border operations. This framework underscores the importance of obtaining and maintaining authorization as

The European Crowdfunding Service Providers Regulation (ECSPR) sets a new standard for transparency and investor protection in the crowdfunding sector. Compared to previous national rules and other EU laws governing retail investment, ECSPR introduces more robust requirements for the information crowdfunding platforms must provide to their clients. These provisions aim to safeguard investors by ensuring

Article 5 of the European Crowdfunding Service Providers Regulation (ECSPR) sets out clear due diligence requirements for crowdfunding platforms. These requirements mandate that crowdfunding service providers (CSPs) perform at least a minimum level of due diligence on project owners before allowing them to propose their projects for funding through their platforms. Due diligence, in its

Regulation (EU) 2020/1503 of the European Parliament and of the Council, commonly referred to as the European Crowdfunding Service Providers Regulation (ECSPR), was published on October 7, 2020. It officially entered into force on November 9, 2020, just 20 days after its publication in the Official Journal of the European Union (OJEU). However, its application

In the complex world of crowdfunding regulations, Germany stands out as a unique case. The current government draft for implementing the European Crowdfunding Service Provider Regulation (ECSPR) has raised significant concerns. At stake is the future of the German crowdfunding market, and this draft could have far-reaching implications not only for Germany but also for