Crowdfunding Regulation in Belgium: Key Points

The Crowdfunding Regulation is a new law in Belgium aimed at regulating crowdfunding services provided by Crowdfunding Service Providers (CFSPs). The regulation aims to protect investors and ensure transparency in crowdfunding activities.

Scope of the Regulation

• Application: The regulation applies to CFSPs that provide crowdfunding services in Belgium or on a cross-border basis, with a consideration of more than €5 million over a period of 12 months.
• Cross-Border Services: CFSPs providing cross-border services must comply with Belgian regulations and adhere to the requirements outlined by the Financial Services and Markets Authority (FSMA).

Authorisation Requirement

• Licensing Requirements: CFSPs must be authorised by the FSMA before providing any crowdfunding services.
• Rules of Conduct: CFSPs must meet certain licensing requirements and adhere to rules of conduct as outlined by the regulation.

Key Investment Information Sheet

• Project Owner Responsibility: The project owner is responsible for drawing up a key investment information sheet for each crowdfunding offer.
• Accuracy, Clarity, and Completeness: The sheet must be correct, clear, and complete.

Transitional Period

• Existing Platforms: Existing crowdfunding platforms falling within the scope of the regulation can apply for a licence under the new regime.
• Transitional Period: They have until 11 November 2022 at the latest to obtain an authorisation.

EU Passporting Rights

• Belgian Licence Benefits: CFSPs licensed in Belgium benefit from EU passporting rights, allowing them to provide crowdfunding services in other European Economic Area (EEA) member states without a permanent establishment or through a branch.

The regulation aims to promote transparency and investor protection in the crowdfunding sector. It requires CFSPs to operate in a transparent and fair manner, ensuring that investors have access to accurate information about crowdfunding offers.