Updated: October 2019
ESBG believes that crowdfunding platforms’ disclosure requirements, registration requirements, risk
management and consumer/investor protection rules should be harmonised. We are concerned that local
platforms operating below ‘best practice’ standards could have a negative effect on the trust in platforms
across the EU.
Existing regulations of credit institutions, credit intermediators and investment firms should be considered to
reflect different services and nature of platforms. Therefore, to enhance consumer protection, crowdfunding
platforms should be obliged to inform investors of
specific risks associated with the investments
Crowdfunding is an emerging alternative form of
financing that connects those who can give, lend
or invest money directly with those who need
financing for a specific project. It usually refers to
public online calls to contribute finance to specific
According to the European Commission, the EU
market for crowdfunding is underdeveloped as
compared to other economies. In October 2017
the European Commission published an inception
impact assessment on a legislative proposal for an EU framework on crowd and peer to peer finance.
ESBG responded via the Commission’s ‘Have Your Say’ tool on this impact assessment in January 2018.
In March 2018, as part of its Fintech Action Plan, the European Commission presented a proposal for a
regulation on crowdfunding service providers. Once adopted at EU level, the new regulation will aim to allow
platforms to apply for an EU passport based on a single set of rules. This should enable them to offer their
services across the EU. Before the break for the EU elections, the crowdfunding position had been fixed by
the European Parliament and the Council also agreed on its position. In the next parliamentary term, trialogue
negotiations are due to take place to finalise this file.
It is important to safeguard similar rules and regulations for all market participants (banks and others) to ensure
a consistent level playing field for EU and non-EU players, as well as avoiding, for example, fraudulent schemes.
These points need to be borne in mind by the EU decision-makers when they finalise this file.
To ensure a level playing field, both among EU
Member States and between financial institutions
and new market players, it is important that
additional EU legislation is taken into account.
As crowdfunding grows in popularity and more
opportunities arise for both investors and project
leaders, the European institutions need to
harmonise requirements and ensure consumer