On 20th May 2022, the European Securities and Markets Authority (ESMA) has updated the Questions and Answers on the European crowdfunding service providers for business Regulation.
The changes specifically address general and investor provisions in the Crowdfunding Regulation, and confirm:
- that any payment services a crowdfunding services provider (CSP) needs must be performed by an authorised PSP;
- that there is no mechanism for designating tied agents under the Regulation, so whether CSPss can appoint them will be a matter of national law;
- that there are no provisions about setting up branches in other Member States, so again that is a matter of national law – which must comply with the fundamental right of establishment and to provide services and
- that while “project owners” are responsible for drawing up the KIIs, CSPs have to have adequate procedures to verify them.