On 10 November 2021, the European Securities and Markets Authority (ESMA) published its final report on technical standards (RTS and ITS) under the European crowdfunding service providers for business Regulation. The draft technical standards have been amended and improved based on the feedback received during an earlier consultation which was published in February 2021 where ESMA had received 32 responses. This report covers all 12 of ESMA’s mandates in this area which are as follows:

  1. complaints handling;
  2. conflict of interest;
  3. business continuity plan;
  4. authorisation;
  5. information on default rate;
  6. entry knowledge test and simulation of the ability to bear loss;
  7. key investment information sheet;
  8. cooperation between competent authorities;
  9. reporting;
  10. notification to ESMA of national provisions concerning marketing requirements;
  11. cooperation between competent authorities; and
  12. cooperation between competent authorities and ESMA.

The draft technical standards have been submitted to the European Commission for adoption. The European Commission shall decide whether to adopt the technical standards within 3 months.