10 things you need to know about the EU Crowdfunding Regulation ((EU) 2020/1503)

10 things you need to know about the EU Crowdfunding Regulation ((EU) 2020/1503) by Van Campen Liem attorneys at law, civil law notaries and tax advisors.

  1. Harmonizes requirements for all crowdfunding platforms in the EU
  2. Provides for a passport to operate cross-border under a home country license
  3. Incumbent license holders have a grace period to November 2022, Regulation enters into force in late 2021
  4. No license if the total consideration for the proposition is over Euro 5 million
  5. The platform maintains a capital reserve that is the higher of euro 25,000.-, and 25% of all (fixed) annual costs
  6. Payments are not allowed to be performed by the platform itself, use a licensed Payment Service Provider
  7. Stringent requirements regarding operations and transparency (basically a mimic of MiFID2)
  8. More extensive knowledge and loss absorption capability test for retail (non-professional) investors, with administrative and operational impact
  9. A specific investment memorandum is mandatory for each proposition, no formal regulatory approval needed
  10. The platform is allowed to manage individual loan portfolios and is allowed to maintain a bulletin board for investors wanting to divest

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Bastiaan Bloemink

Bastiaan Bloemink