ECSPR Extension - Transitional period extended by one year
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Germany
As partner in our Finance & Financial Regulation Group in Frankfurt, I advise our national and international clients on banking regulatory issues and finance law.
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Germany
As an associate in our Finance & Financial Regulation Practice Group located in Frankfurt, I advise international and national clients on regulatory issues and finance law.
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The transitional period during which crowdfunding platforms may continue to operate under the national regulatory framework has been extended until 10 November 2023.
The European Crowdfunding Regulation ((EU) 2020/1503 - European Crowdfunding Service Provider Regulation - "ECSPR") has been in force since 10 November 2021. This regulation applies to crowdfunding services at European level. You can find our guide to the ECSPR here
Originally, the ECSPR provided for a transition period of one year. During this period, crowdfunding service providers should be able to adjust to the new requirements and apply for a licence. The transition period began on 10 November 2021 and was (initially) to run until 10 November 2022. Already in the summer of 2022, the EU Commission had extended this period until 2023; now the extension has been published in the Official Journal of the EU and is thus official.
Therefore, crowdfunding service providers do not have to comply with the requirements of the ECSPR until 10 November 2023 or from the date of obtaining authorisation under the ECSPR. The point in time that occurs earlier is considered decisive. This means that crowdfunding service providers can continue to provide crowdfunding services under the current national regulations and wait for the clarification of further open questions under the ECSPR.
You have questions about the permission as a crowdfunding service provider?
Our financial regulation experts combine pragmatism and an interest in innovative solutions with technical know-how. In our daily dealings with German and European regulators, we navigate our clients safely through all registration and licensing procedures and are always up-to-date on new procedures and regulatory practices. We are happy to advise you on this.
