INFORMATION TECHNOLOGY
Council of Ministers: national rules for the coordination with the EU Regulation 2020/1503 on crowdfunding.
On November 10, 2021, EU Regulation No. 2020/1503 on European crowdfunding service providers for businesses (hereinafter, Regulation) entered into force.
The new European regulation aims to remove those obstacles that prevent the cross-border provision of crowdfunding services. It introduces important changes not only for platforms (which can now rely on a simplified and uniform set of rules to offer their services at the European level), but also for businesses, which can now rely on a broader base of backers by having at their disposal a market that crosses national borders.
TheCouncil of Ministers meeting on March 7, 2023, under the previous delegation of authority, approved regulations to adapt national regulations. Among the main provisions: the shares in limited liability companies that can be offered to the public to raise financial resources (through crowdfunding platforms), the definition of the competent national authorities, and the regulation of the activity of crowdfunding service providers for businesses. Finally, the definition of sanctions for incorrect application of crowdfunding rules.
Consob and the Bank of Italy are the competent national authorities under Regulation (EU) 2020/1503, within the limits of their institutional attributions, of the directives about the responsibilities of the information, which lies with the project owner or its administrative, management or control bodies. Crowdfunding service providers must exercise a minimum level of verification with respect to project owners.
The BoI must also monitor the Regulation's principals:
(a) capital adequacy, risk and equity containment, disclosure;
(b) corporate governance and general organizational and business continuity requirements;
(c) administrative and accounting organization, internal controls, compensation and incentive systems, risk management, internal audit, and outsourcing;
(d) requirements for participants in the capital of the crowdfunding service provider holding at least 20 percent of the capital or voting rights;
(e) audits against project owners.
It will also be possible, by way of derogation from the provisions of Article 2468 of the Civil Code, for shares in limited liability companies to be the subject of a public offering of financial products, including through crowdfunding platforms.
Also fixed by the National Legislature are the sanctioning measures that Regulation 2020/1503 referred back to the Member States: an administrative fine of 500 euros up to 500,000 euros, or up to 5 percent of turnover, applies when this amount exceeds 500,000 euros for the violation of various rules.
The new European regulation aims to remove those obstacles that prevent the cross-border provision of crowdfunding services. It introduces important changes not only for platforms (which can now rely on a simplified and uniform set of rules to offer their services at the European level), but also for businesses, which can now rely on a broader base of backers by having at their disposal a market that crosses national borders.
TheCouncil of Ministers meeting on March 7, 2023, under the previous delegation of authority, approved regulations to adapt national regulations. Among the main provisions: the shares in limited liability companies that can be offered to the public to raise financial resources (through crowdfunding platforms), the definition of the competent national authorities, and the regulation of the activity of crowdfunding service providers for businesses. Finally, the definition of sanctions for incorrect application of crowdfunding rules.
Consob and the Bank of Italy are the competent national authorities under Regulation (EU) 2020/1503, within the limits of their institutional attributions, of the directives about the responsibilities of the information, which lies with the project owner or its administrative, management or control bodies. Crowdfunding service providers must exercise a minimum level of verification with respect to project owners.
The BoI must also monitor the Regulation's principals:
(a) capital adequacy, risk and equity containment, disclosure;
(b) corporate governance and general organizational and business continuity requirements;
(c) administrative and accounting organization, internal controls, compensation and incentive systems, risk management, internal audit, and outsourcing;
(d) requirements for participants in the capital of the crowdfunding service provider holding at least 20 percent of the capital or voting rights;
(e) audits against project owners.
It will also be possible, by way of derogation from the provisions of Article 2468 of the Civil Code, for shares in limited liability companies to be the subject of a public offering of financial products, including through crowdfunding platforms.
Also fixed by the National Legislature are the sanctioning measures that Regulation 2020/1503 referred back to the Member States: an administrative fine of 500 euros up to 500,000 euros, or up to 5 percent of turnover, applies when this amount exceeds 500,000 euros for the violation of various rules.
