Loeven Law Firm has published an article in the Nordic Journal of Commercial Law on the new EU crowdfunding regulation.
The article is focusing on the new legislation seen from a Danish perspective and points our challenges arising from contradicting Danish legislation.
Crowdfunding has become an increasingly used method of non-banking financing for start-ups and small to medium sized enterprises, hence being an innovative way of fundraising often proving to be faster and more efficient than traditional fundraising.
Various EU Member States have introduced numerous and different regulatory regimes for crowdfunding, but with the increasing use of crowdfunding, the European Parliament adopted the Regulation 2020/1503 on European crowdfunding service providers for business (“ECSPR”), in order to regulate and harmonize the rules applying to crowdfunding service providers within the EU.
The article provides the reader with an overall introduction to the key elements of the ECSPR and sheds light on the issues that arise from the ECSPR seen from a perspective of Danish legislation.
The article concludes that there are various areas of the ECSPR in which the ECSPR contradicts with Danish legislation. Hereto, the article highlights that there still are some uncertainties for Danish crowdfunding service providers, including practical matters related to the application process of the Danish FSA.
The authors of the article are Managing Partner Søren Brinkmann and Assistant Attorney Mads Ebert Rasmussen. While being in the writing process, Søren and Mads has participated in a workshop under the CLEAR Project headed by Professor Thomas Neumann of Aalborg University, which is a researched-based project comprised of a practice-focused group of Pan-European academic scholars and practitioners who aspires to provide information and clarity on crowdfunding.
The CLEAR Project has thus formed basis for academic discussions on the ECSPR, providing the opportunity to exchange thoughts and perspectives with colleagues in the same field and share knowledge on experiences with crowdfunding. Loeven Law Firm would like to thank all of our academic colleagues participating in the CLEAR Project and hope to soon join forces once again for another round of academic discussions on crowdfunding.
The full article can be read here: https://journals.aau.dk/index.php/NJCL/article/view/7542/6265
Mads Ebert Rasmussen