Business & Commerce

#2021-1735Modernization of Crowdfunding Framework

🇫🇷France··Other·High Impact·View source ↗

AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.

🇬🇧 English

This law updates the rules for crowdfunding in France, aligning them with EU regulations. It simplifies procedures for service providers and enhances investor protection. The law affects crowdfunding platforms, investment advisors, and individual investors in France by streamlining the authorization process and expanding acceptable financial products.

AI-generated summary. May contain errors. Refer to official sources for legal decisions.

Key Changes

  • Aligns French crowdfunding rules with EU regulations
  • Simplifies authorization process for crowdfunding service providers
  • Enhances investor protection measures

Obligations

What this law requires

high

Crowdfunding service providers must obtain authorization from the Autorité des marchés financiers (AMF) in accordance with EU Regulation 2020/1503

Crowdfunding service providers
licensing
high

Crowdfunding service providers whose activity includes loan facilitation must obtain prior approval from the Autorité de contrôle prudentiel et de résolution (ACPR) in addition to AMF authorization

Crowdfunding service providers facilitating loans
licensing
high

For onerous loans in participatory financing, the conventional interest rate must be of a fixed nature and not exceed the threshold set in article L. 314-6 of the Consumer Code, subject to article L. 314-9

Persons (physical or legal) granting loans through crowdfunding service providers
operational
high

Financial products offered through crowdfunding services must not exceed the threshold fixed in article 1(2)(c) of EU Regulation 2020/1503

Crowdfunding service providers
operational
medium

The AMF must supervise and control approved crowdfunding service providers and consult the ACPR when the provider's activity includes loan facilitation

Autorité des marchés financiers
operational

Affected Parties

Crowdfunding platformsInvestment advisors+1 more…

Tags

crowdfunding,investment,EU regulations