As part of the new European Crowdfunding Service Provider Regulation (ECSPR), which legalizes pan-EU securities crowdfunding, platforms must be approved by the relevant authority in a member state. France, the second largest economy in the EU, has incorporated rules for the approval process and today it released an update on “marketing communications.”
According to the Autorité des marchés financiers (AMF):
“ECSPs are subject to organisational and investor protection rules, including certain general requirements on marketing communications. In accordance with the requirements of the Regulation, and in order to promote a clear framework protecting investors’ interests in France, the AMF sets out its requirements in relation to ECSPs’ marketing communications. The position applies to marketing communications issued by ECSPs authorised in France or in another Member State of the European Union and authorised to provide these services in France, whether they relate to transferable securities or to the business of facilitating the granting of loans.“
France now will require issuers pursuing online capital formation in the country, must disseminate information in French, along with other requirements outlined in the document below.
Platforms and issuers may anticipate that rules will be updated or adjusted as necessary on a rolling basis as the regime is new and regulatory will adapt over time.