Crowdfunding and investment platforms

• Regulation (EU) 2020/1503 — European crowdfunding service providers
• Regulation (EU) 2016/679 — GDPR, Article 27
• Directive (EU) 2015/849 — anti-money laundering
• Regulation (EU) 2022/2065 — DSA

Who has to appoint one

Platforms offering crowdfunding services to project owners and investors in the EU. Authorisation under Regulation 2020/1503 requires establishment in a member state; there is no third-country passport, so a representative does not create market access.

Thresholds and exemptions

The Regulation covers offers up to €5 million over twelve months per project owner. Above that, prospectus rules apply.

What must appear on the label

Not physical. The key investment information sheet must be provided for each offer, with the prescribed risk warnings and the statement that the investment is not covered by deposit guarantee or investor compensation schemes.

Marketplace fields

National competent authorities supervise, and passporting within the Union follows authorisation in one member state. Unauthorised platforms are named publicly by regulators.

Documentation you must hold

Authorisation file, key investment information sheets per offer, entry knowledge test and loss-bearing simulation for non-sophisticated investors, complaint handling procedures, conflict of interest policy, AML programme, and on the data side the Article 30 record and the Article 27 designation.

Standards and testing

Not applicable, though the investor knowledge assessment is a mandated process rather than a formality.

Language requirements

The key investment information sheet in a language accepted by the member state where the offer is made.

When it applies

Authorisation before providing services. The transitional regime for existing national providers has expired.

How long records are kept

Records of offers, investor assessments and communications for at least five years, and AML records for the same period.

What happens if you do not comply

Prohibition of activity, withdrawal of authorisation, and national penalties. Operating without authorisation is a criminal offence in several member states.

Who enforces it

National competent authorities and ESMA, financial intelligence units for AML, and data protection authorities.

Where the boundary lies

An Article 27 representative satisfies data protection and nothing else. Market access requires authorisation of an established entity, and reverse solicitation arguments are treated sceptically in investment services.

Questions we are asked

Can a non-EU platform serve EU investors?

Not without authorisation of an entity established in a member state. The Regulation has no third-country regime.

Is a key investment information sheet mandatory?

Yes, per offer, prepared by the project owner and reviewed by the platform, with prescribed content and risk warnings.