-
Aviation Advisory
Our dedicated Aviation Advisory team bring best-in-class expertise across modelling, lease management, financial accounting and transaction execution as well as technical services completed by certified engineers.
-
Consulting
Our Consulting team guarantees quick turnarounds, lower partner-to-staff ratio than most and superior results delivered on a range of services.
-
Business Risk Services
Our Business Risk Services team deliver practical and pragmatic solutions that support clients in growing and protecting the inherent value of their businesses.
-
Deal Advisory
Our experienced Deal Advisory team has provided a range of transaction, valuation, deal advisory and restructuring services to clients for the past two decades.
-
Forensic Accounting
Our Forensic and Investigation Services team have targeted solutions to solve difficult challenges - making the difference between finding the truth or being left in the dark.
-
Financial Accounting and Advisory
Our FAAS team designs and implements creative solutions for organisations expanding into new markets or undertaking functional financial transformations.
-
Restructuring
Grant Thornton is Ireland’s leading provider of insolvency and corporate recovery solutions.
-
Risk Advisory
Our Risk Advisory team delivers innovative solutions and strategic insights for the Financial Services sector, addressing disruptive forces, regulatory changes, and emerging trends to enhance risk management and foster competitive advantage.
-
Sustainability Advisory
Our Sustainability Advisory team works with clients to accelerate their sustainability journey through innovative and pragmatic solutions.
-
Asset management Asset management of the futureIn today’s global asset management landscape, there is an almost constant onslaught of change and complexity. To combat such complex change, asset managers need a consolidated approach. Read our publication and find out more about what you can achieve by choosing to work with us.
-
Internal Audit Maintaining Compliance with New EU Pension Directive IORP IIOn 28 April 2021, the Irish Government transposed IORP II (Institution for Occupational Retirement Provision), an EU directive on the activities and supervision of pension schemes, into law.
-
Risk, Compliance and Professional Standards FRED 82 – Periodic Updates to FRS 100 – 105The concept of a new suite of standards for the UK and Ireland, aligning with international financial reporting standards, was first conceived in 2002
-
Audit and Assurance Auditor transition: how to achieve a smooth changeoverAppointing new auditors may seem like a daunting task that will be disruptive to your business and a drain on the finance function. Nevertheless, there are a multitude of reasons to consider a change, including simply seeking a ‘fresh look’ at the business.
-
Corporate Tax
Our Corporate Tax team is made up of more than 40 highly experienced senior partners and directors who work directly with a wide range of domestic and international clients; covering Corporation Tax, Company Secretarial, Employer Solutions, Global Mobility and Tax Incentives.
-
Financial Services Tax
The Grant Thornton team is made up of experts who are fully up to date in terms of changing and evolving tax legislation. This is combined with industry expertise and an in-depth knowledge of the evolving financial services regulatory landscape.
-
Indirect Tax Advisory & Compliance
Grant Thornton’s team of indirect tax specialists helps a range of clients across a variety of sectors including pharmaceuticals, financial services, construction and property and food to navigate these complexities.
-
International Tax
We develop close relationships with clients in order to gain a deep understanding of their businesses to ensure they make the right operational decisions. The wrong decision on how a company sells into a new market or establishes a new subsidiary can have major tax implications.
-
Private Client
Grant Thornton’s Private Client Services team can advise you on all areas of financial, pension, investment, succession and inheritance planning. We understand that each individual’s circumstances are different to the next and we tailor our services to suit your specific needs.
Receive the latest insights, news and more direct to your inbox.
Crowdfunding has become an increasingly more popular means of financing for small and medium-sized enterprises (SMEs) and start-ups to gain access to funds and it is believed to support innovation and growth. Crowdfunding platforms or crowdfunding service providers (CSP) are platforms which link prospective investors to fundraisers and facilitate interactions.
Regulatory Background
The FinTech Action Plan presented by the European Commission (EC) on 8th March 2018 first made reference to the proposal for an EU Regulation on investment-based and lending-based crowdfunding service providers for business. The action plan stated that the proposal aimed to provide a regulatory framework that allows crowdfunding platforms to operate on a cross-border basis. This aspect of cross-border transactions was extremely limited under the original laws, holding back the scalability of the EU crowdfunding market.
The EU Crowdfunding Regulation (Regulation 2020/1503) was published on 7th October 2020 and member states were required to adopt and publish the necessary laws and regulations by 10th May 2021. There was no EU-wide legislation on crowdfunding prior to this regulation, however some member states had enacted their own regimes.
The European Crowdfunding Service Providers Regulation (ECSPR) requires the EBA, in close cooperation with ESMA, to develop 12 technical standards: 8 regulatory technical standards (RTS) and 4 implementing technical standards. Hence, both the EBA and ESMA launched consultations seeking input from relevant parties on the draft technical standards developed.
The decision to enact ECSP as a regulation means it will become a binding legislative act which all European member states must abide by once it comes into force on 10th November 2021. The decision to develop the ECSP as a regulation rather than a directive is thought to improve harmonisation across the EU. The new regulation, applying a single set of rules across EU member states, will allow crowdfunding providers to apply for an EU passport and facilitate cross-border transactions, as well as improving investor protection.
'Home States’, will be where the platform is regulated and all other countries it offers its services or business are referred to as ‘Host States’. There is expected to be some degree of variability with regards to the regulation of platforms for ‘Home States’, however there are a very small number of areas for a given host state to regulate differently other than with a platforms’ marketing and communication methods.
Draft Regulatory Technical Standards
The EBA published the draft regulatory technical standards (RTS) on 4th June 2021. The structure of the draft RTS is as follows:
- Chapter I sets out general provisions in terms of the information provided by the CSP to the investor and the format of the information.
- Chapter II sets out elements which must be disclosed as part of the credit risk assessment and the associated measurement techniques employed. The chapter covers credit risk of (i) the individual crowdfunding project; (ii) the portfolio; (iii) the project owners.
- Chapter III sets out the information that CSPs must disclose in relation to each loan included in given portfolio.
- Chapter IV sets out the policies, procedures and organisational arrangements that a CSP must have in place with regards to contingency funds.
What entities are in-scope?
The European Crowdfunding Service Providers (‘ECSP’) is a new category of regulated entity developed as a direct result of the Crowdfunding Regulation. ECSPs are crowdfunding platforms who provide either of the following:
- Lending-based crowdfunding (LBC), also known as peer-to-peer lending, which facilitates ‘business funding’. Persons acting as lenders may use the platform of the ESCP to find suitable persons seeking funding (borrowers).
- Investment-based crowdfunding, where persons may invest directly or indirectly into newly established businesses. Investments related to transferable securities only, i.e. shares and debentures.
The Crowdfunding Regulation applies to ECSPs who raise up to €5 million through crowdfunding offerings over a 12-month period. Offers that exceed the €5 million threshold are regulated under MiFID II.
Timeline
Why Grant Thornton
Grant Thornton’s Financial Services Risk, Consulting and Advisory teams are comprised of dedicated experts who are experienced in supporting companies with these regulatory challenges outlined in the ECSPR.
In particular, our industry-leading Prudential Risk team understands that regulation continues to drive the strategic agenda for financial and non-financial institutions Working together with our sustainability specialists, we believe our skillsets combine the best of scientific knowledge with real world experience to deliver practical, actionable solutions. We specialise in assisting clients across the financial services sector in navigating through the maze of regulation and support clients to identify regulatory obligations and work towards full compliance balanced with your business needs.