Expiration of national rules regulating crowdfunding
On November 10, 2022, the two-year transitional period in the European Crowdfunding Regulation (Regulation (EU) 2020/1503 – “ECSP Regulation“) will expire. A authorization under national law (e.g. under the German Banking Act (KWG) or the German Trade Regulation Act (GewO)) will no longer be sufficient from this date. The new uniform European authorization under the ECSP Regulation will be mandatory. The same applies even if there is no cross-border reference.
- The ECSP Regulation serves to foster cross-border crowdfunding services and creates a uniform European framework for this purpose.
- Within its scope of application, it enables the activity of a [...]
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New requirements for investment funds: PRIIPs key information document replaces key investor information – FAQs:
As of 1 January 2023, capital management companies (Kapitalverwaltungsgesellschaften) have to prepare a PRIIPs key information document for an investment fund that is distributed to private and semi-professional investors. The following is a summary of five frequently asked questions and answers on this topic:
What is the purpose of the key information document?
- The key information document shall enable retail investors in the EU to better understand the basic features and risks of PRIIPs (Packaged Retail and Insurance-Based Investment Products).
- In addition, the requirements for PRIIPs key information documents should lead to a better comparability of such products across [...]
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BaFin on the new sustainability exploration in investment advice and financial portfolio management
In a publication dated August 3, 2022, BaFin referred to the now applicable obligation of investment advisors and financial portfolio managers to conduct customer exploration with regard to the sustainability preferences of customers.
- Customer exploration now also includes sustainability factors, which is why the suitability check and declaration is expanded to include the aspect of the customer’s sustainability preference.
- The background is the Delegated Regulation (EU) 2021/1253 of the European Commission, which regulates the inclusion of sustainability factors, risks and preferences in certain organizational requirements and conditions for the operation of securities firms. [...]
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PSD3 on the horizon?
The European Commission is currently consulting on the revision of the Payment Service Directive 2 („PSD2“).
PSD2 regulates uniform EU-wide requirements for payment service providers and the provision of payment services. In Germany, the regulatory requirements of PSD2 are implemented by the Payment Services Supervision Act (“ZAG“).
In this regard, the European Banking Authority (“EBA“) submitted proposals to amend PSD2 to the European Commission in a 126-page opinion on June 23, 2022.
The proposals include:
- Adjustments to the catalogue of payment services, e.g., streamlining and clarification to enable clearer delineation between individual payment services as well [...]
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EU Trilogue agreed on Markets in Crypto Assets Regulation (“MiCAR”)
The trilogue agreed on the final text for the Markets in Crypto Assets Regulation (“MiCAR“) on June 30, 2022, which now needs to be adopted by the member states (click here for the press release).
- MiCAR will for the first time create a single European legal framework for crypto assets, crypto issuers and service providers. Crypto assets have been regulated in a predominantly inconsistent manner in Europe to date.
- MiCAR provides for specific requirements for Utility Token, Value-Referenced Token and E-Money Token. It does not include Security Tokens, which are already subject to existing EU financial services regulations, [...]
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