The European Securities and Markets Authority (ESMA), has recently published a Final Report in relation to technical standards (RTS and ITS) under the provisions of the Crowdfunding Regulation (ECSPR), in its capacity as the EU's securities markets regulator. The report addresses all of ESMA's 12 mandates in this field which include 4 with a legal deadline set for May 2022. ESMA decided to deliver on all its technical mandates at the same time to provide indicative guidance to competent authorities and stakeholders, in light of the ECSPR entering into force this November.
The 12 standards in the report cover all investor protection aspects under the ECSPR, namely:
- Complaints handling;
- Conflict of interest;
- Business continuity plan;
- Authorisation;
- Information on default rate;
- Entry knowledge test and simulation of the ability to bear loss;
- Key investment information sheet;
- Cooperation between competent authorities;
- Reporting;
- Notification to ESMA of national provisions concerning marketing requirements;
- Cooperation between competent authorities; and
- Cooperation between competent authorities and ESMA.
The draft technical standards have been submitted to the European Commission which will start the endorsement process, as a part of the greater efforts to harmonise the new European crowdfunding regime.
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