Crowdfunding Update – August 2022
Crowdfunding Update: The European Commission has formally proposed a twelve month extension to the transitional period under the EU Crowdfunding Regulation, from 10 November 2022 to 10 November 2023.
Crowdfunding Service Providers (“CSPs”) that provide crowdfunding services only in accordance with national law currently benefit from a transitional period under EU Regulation 2020/1503 (the “EU Crowdfunding Regulation”), allowing them to continue to provide these services without authorisation on a transitional basis. That transitional period was due to expire on 10 November 2022. The European Commission has now formally proposed to extend this transitional period under the EU Crowdfunding Regulation by an additional 12 months, extending the implementation deadline to 10 November 2023, for platforms that have submitted their authorisation application to their national competent authority before 1 October 2022.
The Central Bank of Ireland (the “Central Bank”) is the national competent authority in Ireland responsible for the authorisation and supervision of CSPs. See: Application Process for Crowdfunding Service Providers for more information on how to apply to the Central Bank for authorisation.
It is important to note that the transitional period does not apply to CSPs who have not carried on crowdfunding services in Ireland immediately before the commencement of the EU Crowdfunding Regulation, being 10 November 2021.
Our earlier briefing here provides further detail on developments in the crowdfunding sector following the implementation of the EU (Crowdfunding) Regulations and updates to the Consumer Protection Code 2012.
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Also contributed by Suvi Ronan and Donncha Sexton
This document has been prepared by McCann FitzGerald LLP for general guidance only and should not be regarded as a substitute for professional advice. Such advice should always be taken before acting on any of the matters discussed.