Compliance Briefing — November 10, 2021

Executive briefing: The European Crowdfunding Service Providers Regulation (Regulation (EU) 2020/1503) took effect on 10 November 2021 after a one-year transition. Platforms facilitating business funding up to €5 million must secure authorisation from their national competent authority, meet governance and conduct standards, and issue Key Investment Information Sheets (KIIS) for each offer.

Key compliance checkpoints

Authorisation. File applications demonstrating fit and proper management, prudential safeguards, and procedures for complaint handling, conflicts, and continuity.
Investor protection. Provide entry knowledge tests, ability assessments for non-sophisticated investors, and cooling-off periods as required by Articles 21–23.
Disclosures. Produce KIIS documents with risk factors, fees, project financials, and sustainability statements where applicable.

Operational priorities

Governance controls. Implement policies for outsourcing, segregation of duties, and business continuity as referenced in Article 10.
Data and reporting. Configure systems to deliver transaction reporting and annual default statistics to competent authorities.
Cross-border passporting. Maintain language support and investor disclosures consistent across Member States when leveraging passport rights.

Enablement moves

Map legacy national regimes to the EU standard and phase out divergent onboarding, disclosure, and risk scoring templates.
Automate KIIS production with workflow tooling to ensure updates when project information changes.
Establish compliance monitoring plans covering knowledge tests, cooling-off confirmations, and complaint resolution timelines.

Sources

Zeph Tech streamlines EU crowdfunding compliance with authorisation dossiers, KIIS automation, and investor protection controls aligned to Regulation (EU) 2020/1503.