Legislative proposal for an EU framework on crowd and peer to peer finance

The European Commission (Commission) has published an inception impact assessment on its legislative proposal for an EU framework on crowd and peer to peer finance.

The initiative is part of the Commission’s priority of establishing a Capital Market Union, in particular broadening access to finance for SMEs such as innovative companies, start-ups, and scale-ups. The Commission is of the view that access to finance for these firms is particularly difficult.

The initiative aims to tackle two main problems: (i) market fragmentation and the lack of scale; and (ii) the perceived lack of reliability of crowd funding and peer-to-peer platforms.

The Commission invites interested parties to submit feedback by 27 November 2017.