56 Amendments of Eva KAILI related to 2018/0048(COD)
Amendment 139 #
Proposal for a regulation
Recital 1
Recital 1
(1) Crowdfunding is increasingly an established form of alternative finance fora form of alternative entrepreneurial finance for start-ups as well as small and medium enterprises (SMEs) at an early stage of company growth, typically relying on small investments. Crowdfunding represents a new type of intermediation. Crowdfunding represents an increasingly important type of intermediation as well as a new asset class 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 the scope of this Regulation both lending- based crowdfunding and investment-based crowdfunding, since they are comparable business funding alternatives.
Amendment 140 #
Proposal for a regulation
Recital 2
Recital 2
(2) Obtaining finance is challenging for small and nascent firms, particularly when they move from a start-up into the expansion phase, especially in innovative technological sectors. Crowdfunding can contribute to provide access to finance for such firms and so to complete the Capital Markets Union (CMU). Lack of access to entrepreneurial finance for such firms constitutes a problem even in Member States where access to bank finance has remained stable throughout the financial crisisith weak Private Equity and Venture Capital industries. Similarly, it constitutes a problem in cases where traditional financial intermediation institutions, like banks, operate efficiently. Crowdfunding has emerged as an established practice of funding a project or a venture, typically by a large number of people or organisations, through online platforms on which citizens, organisations and businesses, including business start- ups, raise relatively small amounts of money.
Amendment 142 #
Proposal for a regulation
Recital 3
Recital 3
(3) The provision of crowdfunding services generally relies on three types of actors: the project owentrepreneur that proposes the project to be funded, investors who fund the proposed project, generally by limited investments, and an intermediating organisation in the form of a service provider that brings together project owentrepreneurs and investors or lenders through an online platform.
Amendment 144 #
Proposal for a regulation
Recital 4
Recital 4
(4) In addition to providing an alternative source of financing, including venture capital, crowdfunding can offer other benefits to firms. It can provide concept and idea validation to the business or project owner, give access to a large number of people providing the entrepreneur with insights and information and be a marketing tool if a crowdfunding campaign is successful.
Amendment 145 #
Proposal for a regulation
Recital 5
Recital 5
(5) Several Member States have already introduced domestic bespoke regimes on crowdfunding. Those regimes are tailored to the characteristics and needs of local markets and investors. As a result, the existing national rules diverge as regards the conditions of operation of crowdfunding platforms, the scope of permitted activities and the licencing requirements. Thus, a harmonized approach is necessary to guarantee level- playing field and economic efficiency within the CMU.
Amendment 146 #
Proposal for a regulation
Recital 6
Recital 6
(6) The differences between the existing national rules are such as to obstruct the cross-border provision of crowdfunding services and thus have a direct effect on the functioning of the internal market in such services. In particular, the fact that the legal framework is fragmented along national borders creates substantial legal compliance costs for retail investors who often face difficulties which are disproportional to the size of their investment in determining the rules applicable to cross-border crowdfunding services. Therefore, such investors are often discouraged from investing cross-border via crowdfunding platforms. For the same reasons crowdfunding service providers operating such platforms are discouraged from offering their services in a Member State other than the one in which they are established. As a result, crowdfunding activities have remained hitherto largely national to the detriment of a Union-wide crowdfunding market, thus depriving businesses of access to crowdfunding services, especially in cases where a business resides in Member States lacking the "access to crowd" because of its comparatively smaller population.
Amendment 147 #
Proposal for a regulation
Recital 7
Recital 7
(7) In order to foster cross border crowdfunding activities and to facilitate the exercise of the freedom to provide and receive such services in the internal market for crowdfunding providers it is therefore necessary to address the existing obstacles to the proper functioning of the internal market in crowdfunding services., Providing for a single set of harmonized and mutually recognized rules on the provision of crowdfunding services giving crowdfunding service providers the option to apply for a single Union-wide authorisation to exercise their activity under those rules is a suitable first step for fostering cross border crowdfunding activities and thus enhance the operation of the Single Market.
Amendment 148 #
Proposal for a regulation
Recital 11
Recital 11
(11) In relation to investment-based crowdfunding, the transferability of a security is an important safeguard for investors to be able to exit their investment since it provides them with the legal possibility to dispose of their interest on the capital markets. This Regulation therefore only covers and permits investment-based crowdfunding services in relation to transferable securities. Financial instruments other than transferable securities should however be excluded from the scope of this Regulation because those securities entail risks for investors that cannot be properly managed within this legal framew including certain types of token generating crowdfunding events, and excludes financial instruments that entail risks for retail investorks.
Amendment 149 #
Proposal for a regulation
Recital 11 a (new)
Recital 11 a (new)
(11a) Token generating crowdfunding events, also known as Initial Coin Offerings (ICOs), provide an innovative source of funding for enterprises. Tokens are issued by firms for money raising purposes and the buyers, by acquiring the tokens, they buy claims to the ownership of the issuing firm (equity-tokens) or claims to a future cash-flow of the issuing firm (bond-tokens).
Amendment 151 #
Proposal for a regulation
Recital 11 b (new)
Recital 11 b (new)
(11b) ICOs can generate substantial market, fraud and cybersecurity risks for the investors, therefore crowdfunding service providers that wish to offer an ICO through their platform, should comply with specific additional requirements under this regulation. ICOs that do not use a counterparty do not fall within the scope of these requirements.
Amendment 152 #
Proposal for a regulation
Recital 12
Recital 12
(12) Given the risks associated with crowdfunding investments, it is appropriate, in the interest of the effective protection of investors and the provision of a mechanism of market discipline, to impose a threshold for a maximum consideration for each crowdfunding offer. That threshold should be set at EUR 18 000 000, because that threshold corresponds to the threshold set out inwhich is the maximum threshold up to which Member States can exempt offers of securities to the public from the obligation to publish a prospectus in accordance with Article 3 Regulation (EU) 2017/1129 of the European Parliament and of the Council.9 for the mandatory drawing up and approval of a prospectus above that thresholdThis threshold applies also in the case of token generating crowdfunding events (ICOs). _________________ 9Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market, and repealing Directive 2003/71/EC (OJ L 168, 30.6.2017, p. 12).
Amendment 156 #
Proposal for a regulation
Recital 12 a (new)
Recital 12 a (new)
(12a) To ensure that crowdfunding does not lead to high volumes of financial exposure of the retail investors, maximum thresholds should apply in the case of retail investors as for EUR 4 000 per project of firm and EUR 12 000 per annum.
Amendment 157 #
Proposal for a regulation
Recital 12 b (new)
Recital 12 b (new)
(12b) To ensure the public faith to crowdfunding platforms and allow the sustainable growth of crowdfunding investments, it is instrumental the platforms to hold adequate levels of regulatory capital. To ensure a level- playing field in the EU and avoid regulatory arbitrage EUR 60 000 of minimum shared capital is required from the crowdfunding platforms in order to be licenced.
Amendment 158 #
Proposal for a regulation
Recital 12 c (new)
Recital 12 c (new)
(12c) Crowdfunding can be a valuable source for the mobilization of capital to comparatively riskier projects, thus the possibilities of blending the proceedings of crowdfunding campaigns with other traditional sources of finance can be highly benefiting for the EU prospects of growth and its long term competitive advantage.
Amendment 159 #
Proposal for a regulation
Recital 13
Recital 13
(13) To avoid regulatory arbitrage and to ensure the effective supervision of crowdfunding service providers, crowdfunding service providers should be prohibited from accepting deposits or other repayable funds from the public or act as custodians, unless they are authorised as a credit institution in accordance with Article 8 of Directive 2013/36/EU of the European Parliament and of the Council10 . _________________ 10 Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC (OJ L 176, 27.6.2013, p. 338).
Amendment 160 #
Proposal for a regulation
Recital 15 a (new)
Recital 15 a (new)
(15a) In order to allow for a competitive Union-framework, crowdfunding service providers should be permitted to raise capital through their platforms using tokens. Initial Coin Offerings (ICOs) offer new and innovative ways of funding but can also generate substantial market, fraud and cyber security risks to investors. Therefore, crowdfunding service providers that wish to offer ICOs through their platform, should comply with specific additional requirements under this Regulation. Whilst project owners can still opt for the private placement of an ICO or use a prospectus for an ICO, this regulation only covers those who opt to use a crowdfunding service provider as an intermediary. Further to this, ICOs raising in excess of EUR 8 000 000 or ICOs that do not use a centralised issuer should not fall within the scope of this Regulation. Only tokens that represent either a loan or transferable security and that have a central issuer who takes responsibility for the issuance of the tokens should be covered by the Regulation. Crowdfunding Service providers who offer ICOs via their platform should ensure that all requisite due diligence checks have been conducted in accordance with this regulation.
Amendment 166 #
Proposal for a regulation
Recital 19
Recital 19
(19) Crowdfunding service providers should operate as neutral intermediaries between clients on their crowdfunding platform. In order to prevent conflicts of interests, certain requirements should be laid down with respect to crowdfunding service providers and managers and employees, or any person directly or indirectly controlling them. In particulaHowever, crowdfunding service providers should not be prevented from having any financial participation in the crowdfunding offers on their crowdfunding platforms as this will provide economic signals and incentives to align their interests with the interests of the investors. Furthermore, shareholders holding 210 % or more of share capital or voting rights, managers and employees, or any person directly or indirectly controlling crowdfunding platforms, should not act as clients, in relation to the crowdfunding services offered on that crowdfunding platform.
Amendment 168 #
Proposal for a regulation
Recital 24
Recital 24
(24) Crowdfunding services can be exposed to money laundering and terrorist financing risks, as underlined in the Commission's Report on the assessment of the risks of money laundering and terrorist financing affecting the internal market and relating to cross-border situations12 . Safeguards should therefore be envisaged when meeting conditions for authorisation, assessing the good repute of the management, providing payment services only through licensed entities subject to anti-money laundering and terrorist financing requirements. With a view to further ensuring financial stability by preventing risks of money launderigng and terrorism financing, and taking into account the maximum threshold of funds that can be raised by a crowdfunding offer in accordance with this Regulation, the Commission should assess the necessity and proportionality of subjecting crowdfunding service providers to obligations for compliance with the national provisions implementing Directive (EU) 2015/849 in respect of money laundering or terrorism financing and adding such crowdfunding service providers to the list of obliged entities for the purposes of Directive (EU) 2015/849. _________________ 12 COM(2017) 340 final, Report from the Commission to the European Parliament and the Council on the assessment of the risks of money laundering and terrorist financing affecting the internal market and relating to cross-border activities.
Amendment 172 #
Proposal for a regulation
Recital 30
Recital 30
(30) Investments in products marketed on crowdfunding platforms are not comparable to traditional investments products or savings products and should not be marketed as such. However, to ensure that prospective investors understand the level of risk associated with crowdfunding investments, crowdfunding service providers shouldis mandatory to run an entry knowledge test of their prospective investors to establish their knowledge of investment. Crowdfunding service providers should explicitly warn prospective investors whenever the crowdfunding services provided are deemed as inappropriate for them.
Amendment 173 #
Proposal for a regulation
Recital 32
Recital 32
(32) The key investment information sheet should also take into account the specific features and risks associated with early stage companies, and focus on material information about the project owners, the investors' rights and fees, and the type of securities offered and loan agreements. Comparability is instrumental for the prospective investors, thus certain financial ratios (instead of financial statements) describing the profitability, operational efficiency and liquidity of the business should be provided. Because the project owner concerned is in the best position to provide that information, the key investment information sheet should be drawn up by that project owner. However, since crowdfunding service providers are responsible for informing their prospective investors, they should ensure that the key investment information sheet is complete and they have made minimum due diligence that the information provided is truthful and unbiased.
Amendment 176 #
Proposal for a regulation
Recital 37
Recital 37
(37) To ensure fair and non- discriminatory treatment of investors, crowdfunding service providers that are promoting their services through marketing communications should not treat any particular project more favourably by singling it out from other projects offered on their platform. Any open or planned projects should therefore not feature in marketing communications of a crowdfunding platform. Crowdfunding service providers should however not be prevented from mentioning successfully closed offers in which investments through the platform are no longer possible. In the same line crowdfunding platforms should also inform investors about the default rates of their platform.
Amendment 189 #
Proposal for a regulation
Article 2 – paragraph 2 – point c
Article 2 – paragraph 2 – point c
Amendment 190 #
Proposal for a regulation
Article 2 – paragraph 2 – point c a (new)
Article 2 – paragraph 2 – point c a (new)
(ca) No national rules on licence requirements relating to project owners or investors shall prevent them to make use of crowdfunding services provided by crowdfunding service providers pursuant to and authorised under this Regulation
Amendment 195 #
Proposal for a regulation
Article 2 – paragraph 2 – point d
Article 2 – paragraph 2 – point d
(d) crowdfunding offers with a consideration of more than EUR 18 000 000 per crowdfunding offer, which shall be calculated over a period of 12 months with in regard to a particular crowdfunding project.
Amendment 196 #
Proposal for a regulation
Article 2 – paragraph 2 – point d a (new)
Article 2 – paragraph 2 – point d a (new)
(da) crowdfunding service providers that facilitate the raising of capital through their platforms via Initial Coin Offerings (ICO) that issue tokens that do not have a centralised issuer.
Amendment 200 #
Proposal for a regulation
Article 3 – paragraph 1 – point a – introductory part
Article 3 – paragraph 1 – point a – introductory part
(a) ‘crowdfunding service’ means the matching of businvess funding interest of tors or lenders who aim to provide capital to businvestors and project ownersses on the one side and firms or project owners on the other side, through the use of a crowdfunding platform and which consist of any of the following:
Amendment 206 #
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, including tokens from an ICO, issued by businesses and 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;
Amendment 214 #
Proposal for a regulation
Article 3 – paragraph 1 – point i a (new)
Article 3 – paragraph 1 – point i a (new)
(ia) 'Initial Coin Offering or ICO' means a token generating crowdfunding event issued and sold by a business entity that gives to the buyer the right to claim an equity ownership to the issuing firm (equity-token), or a claim to the future cash-flow of the firm (bond-token).
Amendment 215 #
Proposal for a regulation
Article 3 – paragraph 1 – point i b (new)
Article 3 – paragraph 1 – point i b (new)
(ib) 'loan' means an agreement under which an amount is available by one or more clients to one or more project owner through the crowdfunding platform which is repayable or returnable;
Amendment 216 #
Proposal for a regulation
Article 3 – paragraph 1 – point l a (new)
Article 3 – paragraph 1 – point l a (new)
(la) ‘Initial Coin Offering’ or ‘ICO’ means a method of raising funds from the public using tokens that are put for sale by a business or an individual in exchange for fiat or cryptocurrencies.
Amendment 217 #
Proposal for a regulation
Article 3 – paragraph 1 – point l b (new)
Article 3 – paragraph 1 – point l b (new)
(lb) ‘token’ means any form of digital medium of exchange, a digital unit of account and/or a store of value that is used to serve as or represent an asset
Amendment 218 #
Proposal for a regulation
Article 3 – paragraph 1 – point l c (new)
Article 3 – paragraph 1 – point l c (new)
(lc) ‘cryptocurrency’ means a maths- based decentralised convertible virtual currency that is protected by cryptography, relies on public and private keys to transfer value from one person to another and may be cryptographically signed each time it is transferred;
Amendment 221 #
Proposal for a regulation
Article 4 – paragraph 3
Article 4 – paragraph 3
3. Crowdfunding service providers shall not pay or accept any remuneration, discount or non-monetary benefit for routing investors' orders to a particular crowdfunding offer made on theirs platform or to a particular crowdfunding offer provided on a third party platform.
Amendment 224 #
Proposal for a regulation
Article 4 a (new)
Article 4 a (new)
Article 4a Provision of Initial Coin Offerings 1. This Regulation shall apply to crowdfunding service providers authorised in accordance with Article 10 who facilitates ICOs that fall within the scope of this Article 4a. 2. This Regulation shall only apply to ICOs of tokens where there is a centralised issuer of the tokens. 3. This Regulation shall only apply to ICOs of tokens that are either loans or transferable securities. 4. This Regulation shall only apply to the primary issuance or selling of tokens and not secondary trading of such tokens. 5. This Regulation shall not apply to private placement of tokens. 6. This Regulation shall not apply to ICOs with a consideration of more than EUR 8 000 000 per issuance in an ICO.
Amendment 225 #
Proposal for a regulation
Article 4 a (new)
Article 4 a (new)
Amendment 227 #
Proposal for a regulation
Article 6 – paragraph 1
Article 6 – paragraph 1
1. Crowdfunding service providers shall establish and maintainhave in place, maintain and describe publicly effective and transparent procedures for the prompt, fair and consistent handling of complaints received from clients.
Amendment 233 #
Proposal for a regulation
Article 7 – paragraph 2
Article 7 – paragraph 2
2. Crowdfunding service providers shall not accept as their clients any of their shareholders holding 210% or more of share capital or voting rights, any of their managers or employees, or any person directly or indirectly linked to those shareholders, managers and employees by control as defined in Article 4(1)(35)(b) of Directive 2014/65/EU.
Amendment 234 #
Proposal for a regulation
Article 7 – paragraph 5
Article 7 – paragraph 5
5. Crowdfunding service providers shall disclose to their clients and potential clients the general nature and sources of conflicts of interest and the steps taken to mitigate those risks when they consider that this is necessary for the measures taken in accordance with the internal rules referred to in paragraph 3 to be effective.
Amendment 235 #
Proposal for a regulation
Article 7 a (new)
Article 7 a (new)
Article 7a Alignment of the Interests of the Platform with the Investors 1. To ensure that platforms align their incentives with those of the investors incentive mechanisms shall be encouraged. 2. Crowdfunding platforms may participate in the funding of a project. This participation shall not exceed the 2% of the capital accumulated for the project; 3. A success fee (carry) may be granted to the crowdfunding service provider whenever the project exits successfully from the platform; 4. Crowdfunding service providers shall describe to ESMA the alignment of interests policy that they plan to use prior to the authorization and request its approval. 5. Platforms may modify the alignment of interests policy every three years. Any modification is subject to approval of ESMA. 6. Platforms shall explicitly describe their alignment of interests policy on their website in a prominent place.
Amendment 237 #
Proposal for a regulation
Article 8 – paragraph 2
Article 8 – paragraph 2
2. Outsourcing of operational functions shall not impair materially the quality of the crowdfunding service providers’ internal control and the ability of ESMA to monitor the crowdfunding service provider’s compliance with all obligations laid down in this Regulation.
Amendment 238 #
Proposal for a regulation
Article 9 – paragraph 2
Article 9 – paragraph 2
2. Crowdfunding service providers or third party providers acting on their behalf shall not hold clients' funds or provide payment services or act as custodians unless those funds are intended for the provision of payment services related to the crowdfunding services and the crowdfunding service provider or the third party provider acting on its behalf is a payment service provider as defined in Article 4(11) of Directive (EU) 2015/2366.
Amendment 243 #
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 (NCA) when it receives an application for authorization. The NCA may file a note stating potential objections or comments to ESMA regarding the applicant.
Amendment 245 #
Proposal for a regulation
Article 10 – paragraph 2 – point g
Article 10 – paragraph 2 – point g
(g) a description of the prospective crowdfunding service provider’s business continuity arrangements so as to make sure that loan repayments and investments will continue to be administered for the investors in case of a platform insolvency;
Amendment 246 #
Proposal for a regulation
Article 10 – paragraph 2 – point j
Article 10 – paragraph 2 – point j
(j) a description of the internal rules of the prospective crowdfunding service provider to prevent that its shareholders who hold 210% or more of the share capital or voting rights, its managers or its employees or any person directly or indirectly linked to them by control engage in crowdfunding transactions offered by the prospective crowdfunding service provider;
Amendment 247 #
Proposal for a regulation
Article 10 – paragraph 2 – point j a (new)
Article 10 – paragraph 2 – point j a (new)
(ja) a bank statement of the availability of share capital of EUR 60 000 required for the licence, or alternatively a liability insurance up to this amount;
Amendment 278 #
Proposal for a regulation
Article 14 – paragraph 1
Article 14 – paragraph 1
1. All information, including marketing communications as referred to in Article 19, from crowdfunding service providers to clients or potential clients about themselves, about the costs, financial risks and charges related to crowdfunding services or investments, about the crowdfunding conditions, including crowdfunding project selection criteria, or about the nature of and risks associated with their crowdfunding services shall be clear, comprehensible, complete and correct.
Amendment 279 #
Proposal for a regulation
Article 14 – paragraph 1 a (new)
Article 14 – paragraph 1 a (new)
1a. Crowdfunding providers shall disclose on a semi-annual basis the default rate of the crowdfunding projects of their crowdfunding platform over the last 48 months or, if the platform is less than four years old, since it began. The default rate shall be published online in a prominent place in the website of the platform. A note of the default rate shall be sent to ESMA semi-annually.
Amendment 280 #
Proposal for a regulation
Article 14 – paragraph 1 b (new)
Article 14 – paragraph 1 b (new)
1b. 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 crowdfunding platform.
Amendment 281 #
Proposal for a regulation
Article 14 – paragraph 2
Article 14 – paragraph 2
2. The information referred to in paragraph 1 shall be providedhave available to potential clients before they enter into a crowdfunding transactionat any appropriate time.
Amendment 292 #
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 investorsexplicitly prevent them from investing in crowdfunding projects.
Amendment 295 #
Proposal for a regulation
Article 15 – paragraph 5 – subparagraph 2
Article 15 – paragraph 5 – subparagraph 2
Irrespective of the results of the simulation, prospective investors and investors shall not be prevented from investing in crowdfunding projectnvestors and prospective investors shall be prevented from investing in crowdfunding projects if the results of the simulation demonstrate that the prospective investor does not have the sufficient financial means to bear losses.
Amendment 298 #
Proposal for a regulation
Article 15 – paragraph 5 – subparagraph 2 a (new)
Article 15 – paragraph 5 – subparagraph 2 a (new)
Investors may not invest more than EUR 4 000 per crowdfunding project and EUR 12 000 per annum per crowdfunding platform.
Amendment 308 #
Proposal for a regulation
Article 16 – paragraph 4 a (new)
Article 16 – paragraph 4 a (new)
4a. In order to ensure simplicity and comparability, when businesses have available financial statements, they are obliged to provide financial ratios of profitability, efficiency and liquidity calculated with market recognized methods. The platforms shall inform investors and prospective investors about those ratios in a format that allows easy comparability between firms. Platforms shall state online with a note that they have verified the calculation of the ratios. The ratios shall be amended semi- annually and platforms shall make sure that they will provide simplified time- series charts that depict the financial dynamic of the firm. The platform may provide an indicative, not market binding, estimation of the valuation of the firm that requests or has received funding.
Amendment 310 #
Proposal for a regulation
Article 16 – paragraph 5
Article 16 – paragraph 5
5. Crowdfunding service providers shall have in place and apply adequate procedures to verify the correctness, completeness and the clarity of information contained in the key investment information sheet.
Amendment 313 #
Proposal for a regulation
Article 17 – paragraph 1
Article 17 – paragraph 1
1. CInvestment-based crowdfunding service providers that allow their investors to interact directly with each other to buy and sell loan agreements or transferable securities or tokens which were originally crowdfunded on their platforms, shall inform their clients that they do not operate a trading system and that such buying and selling activity on their platforms is at the client's own discretion and responsibility.
Amendment 314 #
Proposal for a regulation
Article 17 – paragraph 1 a (new)
Article 17 – paragraph 1 a (new)
1a. Lending-based crowdfunding service providers can facilitate their investors to sell and buy loan agreements under binding and non-discretionary rules provided they are non- discriminatory and transparently communicated. The Commission may adopt delegated acts to specify requirements in accordance with Article 37 of this Regulation.