ESMA publishes technical standards on crowdfunding


The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has today published a Final Report on technical standards (RTS and ITS) under the Crowdfunding Regulation (ECSPR). This marks an important milestone towards harmonising the new European crowdfunding regime.

The report covers all of ESMA’s 12 mandates in this area, including 4 with a legal deadline of May 2022. As the ECSPR will enter into force on 10 November 2021, ESMA decided to deliver on all its technical mandates simultaneously in order to provide indicative guidance to competent authorities and stakeholders.

The 12 standards in the report cover all investor protection aspects under the ECSPR, namely:

  • Complaints handling;
  • Conflict of interest;
  • Business continuity plan;
  • Authorisation;
  • Information on default rate;
  • Entry knowledge test and simulation of the ability to bear loss;
  • Key investment information sheet;
  • Cooperation between competent authorities;
  • Reporting;
  • Notification to ESMA of national provisions concerning marketing requirements;
  • Cooperation between competent authorities; and
  • Cooperation between competent authorities and ESMA

The draft technical standards have been amended and improved based on the feedback received during the consultation.

Next steps

The draft technical standards have been submitted to the European Commission which will start the endorsement process.

In the meantime, ESMA will continue its supervisory convergence work, notably through the issuance of Q&As, to further assist competent authorities and stakeholders in the first months of application of the ECSPR.

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