On the 28th July 2022, the Malta Financial Services Authority (“MFSA”) issued a circular in relation to the regulation on European Crowdfunding Service Providers for business (the “Regulation”). The MFSA announced that the EU Commission has published the approved technical standards along with a delegated regulation which addresses certain concerns of the crowdfunding sector.
In recital 71 of the Regulation, the European Commission (the “Commission”) is required to follow and adopt regulatory technical standards which are to be developed by the European Securities and Markets Authority (“ESMA”) and the European Banking Authority (“EBA”). Subsequently, the Commission has published a set of regulations which were submitted by the two authorities for adoption.
The transitional period for crowdfunding service providers to comply with the new requirements has been extended until the 10th November 2023 by the Commission through the delegated regulation. This decision was prompted by ESMA’s advice noting that there would be huge disruptions in the national markets.
Do not hesitate to contact us should you have any questions in relation to the Regulation.