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The crowdfunding law has entered into force

Bucharest, 23 August 2022 – The Financial Supervisory Authority (ASF) announces that Law No. 244 on the establishment of measures implementing Regulation (EU) 2020/1.503 of the European Parliament and of the Council of 7 October 2020 on European providers of business equity financing services and amending Regulation (EU) 2017/1.129 and Directive (EU) 2019/1.937 was published in the Official Gazette Part I, No. 754 of 27.07.2022 and entered into force earlier this month.

The main objective of Regulation (EU) 2020/1.503 is to create a regulatory framework allowing crowdfunding platforms access to the single market through an authorisation based on a single set of rules.

Crowdfunding is a type of activity in which a crowdfunding service provider, without taking risks itself, operates a digital platform, open to the public, to connect or facilitate the connection of potential investors or lenders with businesses seeking funding. Such financing could consist of loans, purchase of securities or other instruments eligible for equity financing.

Crowdfunding provides an alternative source of finance, including venture capital, but it can also offer other benefits to business: it can validate a business idea, give entrepreneurs access to a large number of people by providing insights and information, as well as being a marketing tool.

Given that, until the introduction of Law no. 244/2022, there was no regulatory act in Romania expressly regulating the activity of crowdfunding, ASF was actively involved both from a technical point of view and in terms of the entire inter-institutional approval process that preceded the adoption and entry into force of this law.

Law 244/2022 provides for express provisions on the designation of ASF as the competent authority responsible for carrying out the functions and tasks laid down in Regulation (EU) 2020/1.503, as well as the penalty regime applicable in the event of non-compliance with its provisions, the deadlines for submitting documents for authorisation as a European provider of equity financing services, the conditions for withdrawal of authorisation, the requirements for publicity and the language in which the key investment information sheet can be made available to potential investors, etc.

As the competent authority in Romania for performing the functions and tasks set out in Regulation (EU) 2020/1.503, ASF is open to a technical, efficient and constructive dialogue with the entities that are going to apply for authorisation as providers of crowdfunding services.



About the Financial Supervisory Authority

The Financial Supervisory Authority is the national authority, established in 2013 by GEO 93/2012 approved by Law 113/2013, for the regulation and supervision of the insurance, private pension and capital markets. The FSA contributes to strengthening the integrated framework for the functioning of the three sectors, which together account for more than 10 million participants. More information can be found at www.asfromania.ro.