The Council of the EU has adopted a position it hopes will make it easier for crowdfunding platforms to provide services across the EU, by setting minimum requirements that the platforms must meet and harmonising investor protection rules.
The position also provides tailored rules depending on whether the funding is provided by way of loans or securities. It applies to crowdfunding campaigns of up to €8m over a 12 month period, while allowing Member States that have set a lower threshold for their prospectus requirements to match that threshold for crowdfunders. The Commission thinks this proposal should ensure all relevant crowdfunding businesses will fall either within this regime or, if larger, within MiFID and the Prospectus Regulation.
Trilogue negotiations towards adoption of final legislation, which will take the form of a Regulation on crowdfunding and a directive amending MiFID 2 can now begin.