CySEC issues statement on crowdfunding service providers

The Cyprus Securities and Exchange Commission (CySEC) has released a Policy Statement, PS-01-2023, regarding the application of Regulation (EU) 2020/1503 on European Crowdfunding Service Providers for Business, and Directive DI73-2009-02 for Crowdfunding Service Providers.

This statement is intended to inform both prospective and existing Crowdfunding Service Providers (CSPs) who plan to provide their services from Cyprus, about the next steps towards the full implementation of Regulation (EU) 2020/1503.

PS-01-2023 and Directive DI73-2009-02 cover several key points. Firstly, they outline CySEC’s position on the discretion granted to National Competent Authorities responsible for supervising CSPs under Regulation (EU) 2020/1503.

Secondly, CySEC will now accept applications from prospective CSPs. Thirdly, the statement specifies the information that must be notified to CySEC on an ongoing basis and outlines the cases where an assessment will be undertaken, as well as the scope thereof. Finally, the statement details the fees and charges applicable to CSPs.

The objective of Regulation (EU) 2020/1503 is to provide uniform rules for the provision of Crowdfunding Services across the EU.

These rules will enable CSPs to obtain an EU passport in compliance with a harmonized and enhanced investor protection framework.

Prospective CSPs that intend to provide their services from Cyprus may submit their application using the relevant form available in the Annex of the Commission Delegated Regulation (EU) 2022/2112. This form will be published on CySEC’s website.

A full copy of PS-01-2023 can be found on CySEC’s website.