The Financial Supervisory Authority (FSA) expects to receive a consistent number of authorization requests from crowdfunding service providers this year, after the crowdfunding law came into force, according to Ovidiu Petru - Director General FSA Financial Instruments and Investments Sector.
He specified for Digi24: "The F.S.A believes that the adoption of this normative act will create the conditions for attracting new categories of investors to the capital market, at the same time offering a new financing alternative to small and medium-sized companies in Romania, especially those at the beginning of the journey . Currently, at the level of the F.S.A. we focus on technical and organizational aspects aimed at ensuring the running of an authorization process for crowdfunding service providers as efficiently and as short-term as possible, considering that from the signals we have from the market and the intentions expressed publicly by some companies , we expect to receive a consistent number of authorization applications this year. Romania can become a market where both business models, both the one regarding the purchase of securities or instruments admitted for the purpose of crowdfunding, and the one regarding the granting of loans, can be successful, and the license obtained in Romania will be able to be used as well in the other EU member states."
The crowdfunding law came into force, the normative act transposing the European legislation being published in the Official Gazette and entering into force at the beginning of this month.
According to the F.S.A, crowdfunding is a type of activity in which a crowdfunding service provider, without assuming risks himself, manages a digital platform, open to the public, to connect or facilitate connecting potential investors or lenders with businesses seeking financing. Such financing could consist of loans, the purchase of securities or other instruments admitted for the purpose of crowdfunding.
Law no. 244/2022 provides express provisions regarding the designation of F.S.A. as the competent authority responsible for fulfilling the functions and tasks provided for in Regulation (EU) 2020/1.503, as well as the sanctioning regime applicable in case of non-compliance with its provisions, the deadlines for submitting documents for authorization as a European crowdfunding service provider , the conditions for withdrawing the authorization, the requirements regarding advertising communications and the language in which the sheet with the essential information regarding the investment can be made available to potential investors, etc.
He specified for Digi24: "The F.S.A believes that the adoption of this normative act will create the conditions for attracting new categories of investors to the capital market, at the same time offering a new financing alternative to small and medium-sized companies in Romania, especially those at the beginning of the journey . Currently, at the level of the F.S.A. we focus on technical and organizational aspects aimed at ensuring the running of an authorization process for crowdfunding service providers as efficiently and as short-term as possible, considering that from the signals we have from the market and the intentions expressed publicly by some companies , we expect to receive a consistent number of authorization applications this year. Romania can become a market where both business models, both the one regarding the purchase of securities or instruments admitted for the purpose of crowdfunding, and the one regarding the granting of loans, can be successful, and the license obtained in Romania will be able to be used as well in the other EU member states."
The crowdfunding law came into force, the normative act transposing the European legislation being published in the Official Gazette and entering into force at the beginning of this month.
According to the F.S.A, crowdfunding is a type of activity in which a crowdfunding service provider, without assuming risks himself, manages a digital platform, open to the public, to connect or facilitate connecting potential investors or lenders with businesses seeking financing. Such financing could consist of loans, the purchase of securities or other instruments admitted for the purpose of crowdfunding.
Law no. 244/2022 provides express provisions regarding the designation of F.S.A. as the competent authority responsible for fulfilling the functions and tasks provided for in Regulation (EU) 2020/1.503, as well as the sanctioning regime applicable in case of non-compliance with its provisions, the deadlines for submitting documents for authorization as a European crowdfunding service provider , the conditions for withdrawing the authorization, the requirements regarding advertising communications and the language in which the sheet with the essential information regarding the investment can be made available to potential investors, etc.