The European Crowdfunding Service Providers Regulation and the Future of Marketplace Lending and Investing in Europe: The ‘Crowdfunding Nature’ Dilemma

European Business Law Review, Forthcoming

38 Pages Posted: 21 May 2020

See all articles by Eugenia Macchiavello

Eugenia Macchiavello

University of Genoa, Department of Law - Section of Business and Economic Law; Genoa Centre for Law and Finance

Date Written: April 10, 2020

Abstract

The European Commission’s Proposal for a Regulation on European Crowdfunding Service Providers (ECSPs) for businesses, since its presentation, has faced difficult trilateral negotiations among the European Commission, the European Parliament and the Council of the European Union. The length of the legislative process can be explained not only by the insurgence of nationalisms and the uncertainty related to Brexit negotiations, but also because of the different views of the three European Institutions about crowdfunding and on how to regulate it. Nonetheless, they eventually reached an agreement in December 2019 but the Regulation is still waiting for its formal adoption. The present paper, after briefly describing crowdfunding main features, will critically and analytically analyze the main aspects of the proposed ECSPs Regulation, with respect to all existing versions, underlying their pros and cons and proposing adjustments to reach a functional, tiered and proportional regulation and shed light on the nature and future of financial-return crowdfunding in Europe.

Keywords: Banking Regulation, Investment Services, Payment Services, Peer-to-Peer Lending, Crowdfunding, FinTech, MiFID II, Prospectus, Regulatory Arbitrage, European Crowdfunding Services Regulation, ICOs, Brexit, Bulletin Board, Secondary Markets

JEL Classification: D18, E51, G21, G23, G24, G28, G29, G38, K12, K20, K22, K24, L14, L22, O16, O17

Suggested Citation

Macchiavello, Eugenia, The European Crowdfunding Service Providers Regulation and the Future of Marketplace Lending and Investing in Europe: The ‘Crowdfunding Nature’ Dilemma (April 10, 2020). European Business Law Review, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3594353

Eugenia Macchiavello (Contact Author)

University of Genoa, Department of Law - Section of Business and Economic Law ( email )

Via Balbi 22, 2nd floor
Genova, Genoa 16126
Italy

Genoa Centre for Law and Finance ( email )

Via Balbi, 22
16126 Genova
Italy

HOME PAGE: http://www.clfge.org/teams/eugenia-macchiavello/

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