Eurocrowd, the leading association representing the investment crowdfunding industry in Europe, has announced a survey to garner information as to the status of their members in the approval process under pan-European crowdfunding rules.
Last November, the European Union revealed crowdfunding regulations to enable raising capital across all member states. While there have been a few bumps along the way, the new rules or European Crowdfunding Service Provider Regulation (ECSPR or ECSP) is expected to fuel online capital formation growth in Europe.
Under the new rules, a platform seeking to qualify must be approved by the relevant national regulatory authority. As each member state approaches regulation differently, this may create an opportunity for regulatory arbitrage or slow certain countries whose rules are more restrictive. The firs platform to be approved under the new rules was Crowdcube, based in the UK but operating in Europe for many years with a Spanish subsidiary. Spanish authorities have approved Crowdcbue to operated under the EU rules.
Eurocrowd states in the survey:
“We have created the questionnaire to assess the overall status on how our members are proceeding with the ECSP authorization process. The goal is to share information among ECN members that might lead to further collaboration and experience exchange. European Crowdfunding Network is willing to support the ECSP authorization process for ECN members in the field of negotiating legal fees, or dealing with insurance companies. We would really appreciate inputs from ECN members in order facilitate collaboration. This questionnaire would take about 5 minutes to complete and the results will be shared on our official channels.”
Of note is the fact that several US crowdfunding platforms are pursuing Europe for an expansion of services.
The survey is available here with a deadline of July 31st.