On the 25th January 2022, the Malta Financial Services Authority (“MFSA”) issued new Crowdfunding Rules (the “Rules”) which contain provisions regulating the operations of Crowdfunding Service Providers authorised by the MFSA. The Rules may be seen as a reflection and extension of the EU regulation on European Crowdfunding Service Providers for businesses (“ECSP Regulation”), which has become directly applicable as from the 10th November 2021.
The new Rules contain provisions relating to the following:
- Technical Standards
The MFSA recommends that the new Rules are read in conjunction with the requirements set out in the ECSP Regulation. In this respect, Chapter 1 of the Rules highlights the technical standards supplementing the Rules and ECSP Regulation, including the technical standards relating to the complaints handling and reporting functions to be established within the structure of Crowdfunding Service Providers.
- Marketing Requirements
Chapter 2 of the new Rules sets out the marketing requirements that will apply to both investment-based and lending-based crowdfunding services provided by Crowdfunding Service Providers when promoting their services through marketing to clients in Malta. the scope of this chapter is to delineate the principles, standards and risk warnings applicable to crowdfunding marketing communications.
Do not hesitate to contact us should you require any further information or assistance on the above.