20 Amendments of Molly SCOTT CATO related to 2018/0048(COD)
Amendment 137 #
Proposal for a regulation
Title 1
Title 1
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on European CrowdfPlatform Funding Service Providers (ECSP) for Business (Text with EEA relevance)
Amendment 138 #
Proposal for a regulation
Recital 1
Recital 1
(1) CrowdfuPeer-to-peer lending and ing isvestment provided through the mediation of online platforms are increasingly an established forms of alternative finance for small and medium enterprises (SMEs), at an early stage of company growth, typically relying on small investments. CrowdThus, online platforms for crowd-sourced lending- and equity- based funding represents a new types of intermediation where a crowdfunding service provider interacts with its clients through a digital platform without taking on own risk in order to match prospective investors with businesses that seek funding, irrespective of whether that funding leads to a loan agreement, to an equity stake or to another transferable security based stake. It is therefore appropriate to include in tThe scope of this Regulation therefore includes both lending-based crowdfunding and investment-equity- based crowdfunding, since they are comparable business funding alternatives. for business. It does not, however, include crowdfunding campaigns that are based exclusively on donations and non-financial rewards.
Amendment 162 #
(15a) For the same reason, crowdfunding service providers that use Initial Coin Offerings (ICOs) on their platform should be excluded from this Regulation. To achieve efficient regulation on this emerging technology, the Commission could in future propose comprehensive EU-level legislation based on a thorough impact assessment.
Amendment 184 #
Proposal for a regulation
Article 1 – paragraph 1 – point a
Article 1 – paragraph 1 – point a
(a) the operation and organisation of lending- and equity-based crowdfunding service providers;
Amendment 185 #
Proposal for a regulation
Article 1 – paragraph 1 – point b
Article 1 – paragraph 1 – point b
(b) the authorisation and supervision of lending- and equity-based crowdfunding service providers;
Amendment 186 #
Proposal for a regulation
Article 1 – paragraph 1 – point c
Article 1 – paragraph 1 – point c
(c) transparency and marketing communications in relation to the provision of lending- and equity-based crowdfunding services in the Union.
Amendment 187 #
Proposal for a regulation
Article 2 – paragraph 1
Article 2 – paragraph 1
1. This Regulation shall apply to legal persons who choose to seek authorisation in accordance with Article 10 and to crowdfunding service providers authorised in accordance with that Article, in relation to the provision of crowdfunding services. These legal persons shall have an effective and stable establishment in a Member State of the Union in order to be eligible to apply for authorisation.
Amendment 188 #
Proposal for a regulation
Article 2 – paragraph 2 – point c
Article 2 – paragraph 2 – point c
Amendment 197 #
Proposal for a regulation
Article 2 – paragraph 2 – point a a (new)
Article 2 – paragraph 2 – point a a (new)
(aa) Crowdfunding service providers that use Initial Coin Offerings (ICOs) on their platforms;
Amendment 202 #
Proposal for a regulation
Article 3 – paragraph 1 – point a – point i
Article 3 – paragraph 1 – point a – point i
(i) the facilitation of granting of loans, also called lending-based crowdfunding;
Amendment 207 #
Proposal for a regulation
Article 3 – paragraph 1 – point a – point ii
Article 3 – paragraph 1 – point a – point ii
(ii) the placing without firm commitment, as referred to in point 7 of Section A of Annex I to Directive 2014/65/EU, of transferable securities issued by project owners and the reception and transmission of client orders, as referred to in point 1 of Section A to Annex I to Directive 2014/65, with regard to those transferable securities, also called equity-based crowdfunding;
Amendment 212 #
Proposal for a regulation
Article 3 – paragraph 1 – point c
Article 3 – paragraph 1 – point c
(c) ‘crowdfunding service provider’ means a legal person who provides lending- and equity-based crowdfunding services and has been authorised for that purpose by the European Securities and Markets Authority (ESMA) in accordance with Article 11 of this Regulation;
Amendment 220 #
Proposal for a regulation
Article 4 – paragraph 1
Article 4 – paragraph 1
1. Crowdfunding services shall only be provided by legal persons that have an effective and stable establishment in a Member State of the Union and that have been authorised as crowdfunding service providers in accordance with Article 11 of0 of this Regulation. Accordingly, legal persons established in a third country cannot apply for authorisation as crowdfunding service providers in accordance with this Regulation.
Amendment 244 #
Proposal for a regulation
Article 10 – paragraph 1
Article 10 – paragraph 1
1. A legal person that intends to provide crowdfunding services shall apply to ESMA for authorisation as a crowd funding service provider. ESMA shall inform the National Competent Authority when it receives an application for authorisation. The National Competent Authority may submit objections to ESMA regarding the applicant.
Amendment 249 #
Proposal for a regulation
Article 10 – paragraph 3 a (new)
Article 10 – paragraph 3 a (new)
3a. All crowdfunding service providers shall have initial capital of EUR 50 000.
Amendment 282 #
Proposal for a regulation
Article 14 a (new)
Article 14 a (new)
Article 14a Due diligence requirements 1. Crowdfunding service providers shall carry out a minimum level of due diligence on the projects owners of crowdfunding projects that seek to be funded through their crowdfunding platform. 2. The minimum due diligence referred to in paragraph 1 shall include all of the following: (a) Proof that the project owner is a person of good repute and possesses appropriate knowledge and experience to seek investment on a crowdfunding platform; (b) Proof that the project owner does not have a criminal record in respect of convictions or penalties of national rules in force in the fields of commercial law, insolvency law, financial services legislation, anti-money laundering legislation, fraud or professional liability. 3. Crowdfunding service providers shall disclose the due diligence checks that have been performed on any crowdfunding project.
Amendment 284 #
Proposal for a regulation
Article 14 b (new)
Article 14 b (new)
Article 14b Default rate disclosure 1. Crowdfunding service providers shall disclose on a quarterly basis the default rate of the crowdfunding projects registered on the crowdfunding platform over the last 36 months or since the start of its operation, if the platform is less than three years old. 2. The default rate of the crowdfunding projects registered on the crowdfunding platform shall be published in a prominent place on the website of the crowdfunding platform. 3. The European Commission shall adopt a delegated act in accordance with Article 37 to specify the methodology for calculating the default rate of the projects offered on the crowdfunding platform.
Amendment 293 #
Proposal for a regulation
Article 15 – paragraph 4
Article 15 – paragraph 4
4. Where prospective investors do not provide the information required pursuant to paragraph 1, or where crowdfunding service providers consider, on the basis of the information received under paragraph 1 that the prospective investors have insufficient knowledge, crowdfunding service providers shall inform those prospective investors that the services offered on their platforms may bare inappropriate for them and give them a risk warning. That information or risk warning shall not prevent prospective investorsprevent them from investing in crowdfunding projects.
Amendment 296 #
Proposal for a regulation
Article 15 – paragraph 5 – subparagraph 2
Article 15 – paragraph 5 – subparagraph 2
Amendment 306 #
Proposal for a regulation
Article 16 – paragraph 2 – point c
Article 16 – paragraph 2 – point c
You may not be able to sell the investment instruments when you wish. If you are able to sell, you may be subject to losses.