Introduction to Crowdfunding Service Providers

A crowdfunding service provider is a legal person established within the European Union to provide crowdfunding services as defined under Regulation (EU) 2020/1503 of the European Parliament and of the Council of 7 October 2020 on European crowdfunding service providers for business, and amending Regulation (EU) 2017/1129 and Directive (EU) 2019/1937 (“Regulation (EU) 2020/1503”). Regulation (EU) 2020/1503 establishes an EU regulatory regime for crowdfunding service providers.

The Central Bank of Ireland is the competent authority in Ireland responsible for the authorisation and supervision of crowdfunding service providers pursuant to the European Union (crowdfunding)Regulations 2021 (S.I. No. 702 of 2021).

FAQs

For information and guidance in relation to the implementation of Regulation (EU) 2020/1503, please refer to the crowdfunding regulations FAQ document.

Background to Crowdfunding Service Providers

Regulation (EU) 2020/1503 entered into force on 10 November 2021. Prior to this, there was no uniform requirements in place for the provision of crowdfunding services across the European Union.

Regulation (EU) 2020/1503 provides this uniform set of requirements for:

  • The provision of crowdfunding services
  • The organisation, authorisation and supervision of crowdfunding service providers
  • The operation of crowdfunding platforms and
  • Transparency and marketing communications in relation to the provision of crowdfunding services in the European Union.

It applies to legal persons providing the crowdfunding service of matching business funding interests of investors and project owners through the use of a crowdfunding platform and which consists of any of the following activities:

  1. The facilitation of granting of loans and

  2. The placing without a firm commitment basis, as referred to in point (7) of Section A of Annex I to Directive 2014/65/EU, of transferable securities and admitted instruments for crowdfunding purposes issued by project owners or a special purpose vehicle, and the reception and transmission of client orders, as referred to in point (1) of that Section, in relation to those transferable securities and admitted instruments for crowdfunding purposes.  

It is important to note that crowdfunding services, as defined under Regulation (EU) 2020/1503, can only be provided by legal persons established within the European Union and authorised as a crowdfunding service provider in accordance with Article 12 of Regulation (EU) 2020/1503.

Once authorised under Regulation (EU) 2020/1503, a crowdfunding service provider can provide crowdfunding services across other member states in line with the cross-border requirements outlined under Article 18 of Regulation (EU) 2020/1503.

Any queries in relation to the application process should be sent to [email protected]. Supervision queries should be sent to [email protected]. For queries in relation to the Central Bank of Ireland Portal and issues with submitting of Individual Questionnaires, please contact [email protected].

Additional Information 

For information on how to report an actual or alleged infringement of Regulation (EU) 2020/1503, please see below.

The Central Bank is the competent authority in Ireland responsible for considering alleged infringements of Regulation (EU) 2020/1503 by crowdfunding service providers. 

Where a person wishes to report an actual or potential alleged infringement of Regulation (EU) 2020/1503, the report can be sent as a protected disclosure to the Central Bank using the following methods:

  • Email: [email protected]
  • Telephone: 1800 130 014 (calls are answered Monday to Friday 9.30am - 5.00pm)
  • Protected Disclosures Desk, Central Bank of Ireland, PO Box 11517, Spencer Dock, Dublin 1, D01 W920.

Please ensure that “Crowdfunding Alleged Infringement” is in the subject line of your correspondence with the Central Bank.

The person making the report can also seek to have a meeting with dedicated staff members of the Central Bank.

If possible, you should submit documentary evidence to support your protected disclosure.

Information regarding alleged infringements of Regulation (EU) 2020/1503 will be treated as protected disclosures. For information in relation to the process and procedures surrounding protected disclosures, please see Protected Disclosures including Whistleblowing and Infringement Reports.

For information on how to make a consumer complaint, please see below.

The Financial Services and Pensions Ombudsman (“FSPO”) is the independent service that helps resolve individual complaints between customers* (which includes individuals and also sole traders, partnerships and companies with a turnover not exceeding €3 million) and regulated financial services providers, including crowdfunding service providers.

A customer of a crowdfunding service provider may pursue a complaint with the FSPO, concerning the protections offered by the EU Crowdfunding Regulation.

Individual complaints against financial institutions or complaints about financial services, must first be raised with the financial institution concerned to provide it with an opportunity to respond to your complaint, in this case with the crowdfunding service provider concerned. If you are not happy with the response from the crowdfunding service provider, you have the right to refer the complaint to the FSPO. 

Details regarding the FSPO, including how to submit a complaint, are available on the FSPO’s website.

Please see the Central Bank's Consumer Hub for further information on making a complaint against a financial service provider.

* For further information on what is meant by ‘customer’ in this context, please see the definition of ‘complainant’ in Section 2(1) of the Financial Services and Pensions Ombudsman Act 2017.

For information on the Central Bank's regulatory role, please see below.

The Central Bank will ensure and monitor effective compliance with Regulation (EU) 2020/1503 through its existing supervisory processes.  This includes for example:

  • Assessing applications from crowdfunding service providers for authorisation in Ireland
  • Examining prudential returns and reports, conducting regular review meetings and on-site inspections
  • Developing systems and procedures to monitor activities and detect non-compliance by financial service providers.

For more information on the Central Bank’s approach to supervision of financial service providers see How we regulate.

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