The European Crowdfunding Service Providers Regulation and the Future of Marketplace Lending and Investing in Europe: the ‘Crowdfunding Nature’ Dilemma (UPDATED JULY 2020)

Forthcoming in European Business Law Review 2021, 3

47 Pages Posted: 12 Aug 2020 Last revised: 14 Jan 2021

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; Jean Monnet Centre of Excellence on Sustainable Finance (EUSFiL), University of Genoa

Date Written: July 30, 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, the uncertainty related to Brexit negotiations and the COVID-19 pandemic outbreak, 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 and the Regulation is finally close to its formal adoption. The present paper, after briefly describing crowdfunding main features, will critically and analytically analyze the main aspects of the ECSPs Regulation, with respect to the approved text and to the pre-existing versions, evaluating the available alternatives, 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.

The present paper is an updated version of my previous one here: https://ssrn.com/abstract=3594353.

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, Prudential Requirements, Disclosure, Know-Your-Customer

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 (UPDATED JULY 2020) (July 30, 2020). Forthcoming in European Business Law Review 2021, 3, Available at SSRN: https://ssrn.com/abstract=3668590 or http://dx.doi.org/10.2139/ssrn.3668590

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/

Jean Monnet Centre of Excellence on Sustainable Finance (EUSFiL), University of Genoa ( email )

Italy

HOME PAGE: http://https://www.eusfil.eu/academic-fellows

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