The European Commission has formally proposed extending the transitional period under the EU Crowdfunding Regulation by 12 months from 10 November 2022 to 10 November 2023.
This means that in-scope crowdfunding service providers (CSPs) who were already carrying on in-scope crowdfunding services on 10 November 2021 can continue to provide those services on a transitional basis until 10 November 2023, provided that their authorisation application is submitted to their national competent authority (NCA) before 1 October 2022.
The possibility of an extension was first mooted by ESMA in July 2021 (see our update here: EU Crowdfunding Regulation: ESMA looks for short delay to application date) in light of concerns that the 10 November 2022 date could result in disruptions in some of the larger national markets due to NCAs being unable to re-authorise all existing platforms by 10 November 2022, and due to the work involved in existing CSPs adapting their business operations to a broader and more granular framework.
Separately, the Commission has also adopted the eleven Level 2 measures prepared by ESMA under the Regulation, which are now subject to scrutiny by the European Parliament and EU Council before being published in the Official Journal. The remaining two Level 2 measures were the subject of final reports from the EBA to the Commission in October 2021 (individual portfolio management of loans) and May 2022 (information to clients), and await adoption by the Commission.
This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.
