90pc of European platforms applying for EU-wide licence
Nov 29, 2022 1:23:32 PM
Summary
90 per cent of European crowdfunding platforms say they have already started working on the authorisation process for an EU-wide licence under the new rules.The regulation on European crowdfunding service providers (ECSP) allows all nationally-regulated P2P and crowdfunding platforms in Europe to operate in all of the 27 European member states and to carry out cross-border transactions.
The European Markets and Securities Authority (ESMA) has extended the transition deadline, giving platforms until November 2023 to become compliant with the new rules.
Trade body EuroCrowd surveyed its members in July, comprising a mix of EU and non-EU platforms, most of which currently operate with a national crowdfunding licence. It found that 70 per cent have already started the authorisation process for ECSP, while 20 per cent said they were planning to start in one to two months, meaning they will have commenced the process by now. Just 10 per cent said they planned to start in three to four months.
The survey also found that 40 per cent of platforms expect compliance with the new rules to cost more than €50,000 (£43,547), while 30 per cent expect it to cost between €30,000 and €50,000, and the remaining 30 per cent expect it to cost from €15,000 to €30,000.
“The respondents experience major constraints…with the authorisation process [that] include language and translation of documents, [the] need for a qualified lawyer, the unpredictability of the process, the adaptation of the platform, having enough resources for the whole process, and the varying national implementation laws,” EuroCrowd said “Other concerns mentioned included information about seeking to licence in another member state and the adaption of internal controls regarding information disclosure to customers.”
Link: https://p2pfinancenews.co.uk/2022/10/03/90pc-of-european-platforms-applying-for-eu-wide-licence/