Application Process for Crowdfunding Service Providers - Ireland
To discuss how to apply for your crowdfunding authorisation and/or whether you fall under the Transitional Period contact Peter Oakes at CompliReg by email office@complireg.com. And see below for other Relevant Material from CompliReg on crowdfunding, including our webinar.
Peter Oakes and CompliReg are currently working with several crowdfunding service providers on their strategies and applications for authorisation.
Peter Oakes and CompliReg are currently working with several crowdfunding service providers on their strategies and applications for authorisation.
The Central Bank of Ireland is the competent authority in Ireland responsible for the authorisation and supervision of crowdfunding service providers pursuant to the European Union (crowdfunding) Regulations 2021 (S.I. No. 702 of 2021) (“the Regulations”).
Applicants should expect the CBI to operate a rigorous and effective gatekeeper function while processing each application as expeditiously as possible while meeting its obligations
.
Existing crowdfunding service providers:
Article 48 (1) of Regulation (EU) 2020/1503 provides that a crowdfunding service provider that is providing a crowdfunding service within the state before the commencement of Regulation (EU) 2020/1503, may continue to provide crowdfunding services included within the scope of Regulation (EU) 2020/1503 until the earlier of:
New Applicants:
The transitional arrangements provided for under Article 48 (1) of Regulation (EU) 2020/1503 do not apply to crowdfunding service providers who have not carried on crowdfunding services within the state immediately before the commencement of Regulation (EU) 2020/1503. If you falls outside the scope of the transitional period you are required to complete and submit an application for authorisation to the Central Bank and will not be able to engage in such activities until the Central Bank has granted authorisation pursuant to Regulation (EU) 2020/1503. The Central Bank may also refuse to grant authorisation.
Criminal Offence:
It is an offence for entities to commence engaging in crowdfunding services until authorisation as a crowdfunding service provider has been obtained from the Central Bank.
Before Applying for Authorisation:
Each proposed crowdfunding service provider (or “applicant”) considering applying for authorisation must first consider whether its proposed business model:
Where legal advice is required, CompliReg will work with you and introduce you to law firms should you require legal advice on whether your proposed activities require authorisation pursuant to Regulation (EU) 2020/1503.
Having satisfactorily completed each consideration above, you should review the Guidance Note on Completing an Application for Authorisation as a crowdfunding service provider to ensure you are familiar with the authorisation process and the requirements of the Central Bank.
Preliminary Meeting with the Central Bank of Ireland:
Thereafter CompliReg will work with the applicant to arrange a preliminary meeting at which time the applicant discusses their proposed business model prior to beginning the authorisation process. An applicant should ensure that it understands and can demonstrate to the Central Bank that it will be able to meet the legislative requirements relating to authorisation as a crowdfunding service provider (including ESMA Technical Standards and related Guidance) and all other applicable legislative and regulatory requirements published by the Central Bank.
Applicants should expect the CBI to operate a rigorous and effective gatekeeper function while processing each application as expeditiously as possible while meeting its obligations
.
Existing crowdfunding service providers:
Article 48 (1) of Regulation (EU) 2020/1503 provides that a crowdfunding service provider that is providing a crowdfunding service within the state before the commencement of Regulation (EU) 2020/1503, may continue to provide crowdfunding services included within the scope of Regulation (EU) 2020/1503 until the earlier of:
- 10 November 2022 or
- The date that they are authorised under Regulation (EU) 2020/1503.
New Applicants:
The transitional arrangements provided for under Article 48 (1) of Regulation (EU) 2020/1503 do not apply to crowdfunding service providers who have not carried on crowdfunding services within the state immediately before the commencement of Regulation (EU) 2020/1503. If you falls outside the scope of the transitional period you are required to complete and submit an application for authorisation to the Central Bank and will not be able to engage in such activities until the Central Bank has granted authorisation pursuant to Regulation (EU) 2020/1503. The Central Bank may also refuse to grant authorisation.
Criminal Offence:
It is an offence for entities to commence engaging in crowdfunding services until authorisation as a crowdfunding service provider has been obtained from the Central Bank.
Before Applying for Authorisation:
Each proposed crowdfunding service provider (or “applicant”) considering applying for authorisation must first consider whether its proposed business model:
- Requires authorisation pursuant to Regulation (EU) 2020/1503
- Can comply with the authorisation requirements pursuant to Regulation (EU) 2020/1503
- Can comply with the Central Bank’s requirements and any other relevant financial services law and
- Is capable of complying with, and adhering to, the supervisory requirements that must be satisfied on an ongoing basis.
Where legal advice is required, CompliReg will work with you and introduce you to law firms should you require legal advice on whether your proposed activities require authorisation pursuant to Regulation (EU) 2020/1503.
Having satisfactorily completed each consideration above, you should review the Guidance Note on Completing an Application for Authorisation as a crowdfunding service provider to ensure you are familiar with the authorisation process and the requirements of the Central Bank.
Preliminary Meeting with the Central Bank of Ireland:
Thereafter CompliReg will work with the applicant to arrange a preliminary meeting at which time the applicant discusses their proposed business model prior to beginning the authorisation process. An applicant should ensure that it understands and can demonstrate to the Central Bank that it will be able to meet the legislative requirements relating to authorisation as a crowdfunding service provider (including ESMA Technical Standards and related Guidance) and all other applicable legislative and regulatory requirements published by the Central Bank.
Summary of the Key Stages in the Application Process
What if your application is incomplete?:
Completed Applications:
- A preliminary meeting will be held with the applicant in advance of an application being made.
- Applicant submit a fully completed Application Form and fully completed IQs - details below:
- An electronic copy of the completed Application Form for Authorisation as a crowdfunding service provider (including all the specific information and supporting documentation requested therein)
- Following submission, an individual nominated by the applicant will be responsible for Online Reporting System (“ONR”) access, will receive login details in order to submit Individual Questionnaires (“IQ”). Completed IQs ((including all the specific information and documentation requested therein) must be provided in respect of all relevant individuals proposed to hold a Pre-Approval Controlled Function (“PCF”) role in the applicant.
- The Central Bank expects to acknowledges receipt of the application form within ten working days of its receipt.
- Within 25 working days of the receipt of the application form, the Central Bank assesses whether the Application is complete i.e. whether the application contains all the required information and documentation (which includes the information and documentation required in the application form and the IQ).
What if your application is incomplete?:
- Where all the required information and documentation has not been provided, the Central Bank will identify the missing information and set a deadline for the applicant to provide the missing information. Should an Application remain incomplete after this deadline, the Central Bank may refuse to review the application and, in the event of such refusal, shall return the submitted documents to the Applicant.
Completed Applications:
- Where an application is deemed complete, the Central Bank will notify the applicant. The Central Bank will then complete an assessment of the application and may issue detailed comments and/or seek additional information.
- The applicant is provided with the opportunity to address the comments and requests issued by the Central Bank in a revised Application submission(s).
- The application will be assessed within three months from the date it is determined to be complete.
- The Central Bank will notify the Applicant of its decision in respect of the application.
Documentation Required to Make an Application for Authorisation:
Applicants submit the following documentation which should be fully completed:
Passporting:
Where an applicant proposes to operate on a cross border (freedom of services) basis within the European Economic Area (EEA) it should also submit the following information:
Important:
The completed Application Form, along with all relevant accompanying material, must be submitted in electronic format to the Central Bank via its secure file transfer system. Submission of a hardcopy documentation is not required.
The completed IQs, along with all relevant accompanying material, must be submitted electronically via the Central Bank’s Online Reporting System (“ONR”) by all proposed PCF role holders. Applicants will be provided with login details for the ONR and the applicant will need to ensure that all relevant individuals proposed to hold a PCF role (typically board members, senior management, key function holders) complete Fitness and Probity IQs (view more information and guidance material on completing the IQ).
Applicants submit the following documentation which should be fully completed:
- The Application Form for Authorisation as a crowdfunding service provider (including all the specific information and documentation requested therein), including the applicant’s business plan and programme of operations) and
- IQs (including the specific information and documentation requested therein) in respect of each person proposed to hold a PCF role in the applicant.
Passporting:
Where an applicant proposes to operate on a cross border (freedom of services) basis within the European Economic Area (EEA) it should also submit the following information:
- A list of the member states in which the applicant intends to provide crowdfunding services
- The identity of the natural and legal persons responsible for the provision of the crowdfunding services in those member states
- The starting date of the intended provision of the crowdfunding services by the applicant and
- A list of any other activities provided by the applicant not covered by Regulation (EU) 2020/1503.
Important:
The completed Application Form, along with all relevant accompanying material, must be submitted in electronic format to the Central Bank via its secure file transfer system. Submission of a hardcopy documentation is not required.
The completed IQs, along with all relevant accompanying material, must be submitted electronically via the Central Bank’s Online Reporting System (“ONR”) by all proposed PCF role holders. Applicants will be provided with login details for the ONR and the applicant will need to ensure that all relevant individuals proposed to hold a PCF role (typically board members, senior management, key function holders) complete Fitness and Probity IQs (view more information and guidance material on completing the IQ).
Key Stages in the Application Process (4 Key Stages)
Stage 1 – Preliminary Meeting
The applicant requests a preliminary meeting with the Central Bank to discuss its proposed application. A meeting request should be set out, at a high level, the proposed authorisation being sought.
The Central Bank will revert to the applicant to schedule the preliminary meeting.
The applicant is required submit a short presentation and a list of attendees five business days in advance of the preliminary meeting with the Central Bank. The presentation should be reasonably high level and include, where relevant, the following:
At the preliminary meeting, the applicant will be informed of the Central Bank’s authorisation process and timeframes.
Stage 2 – Submission and Completeness Check of Application Form and Individual Questionnaires
Should the applicant wish to proceed to make an application for authorisation after the preliminary meeting with the Central Bank, the applicant will need to submit a fully completed Application Form for Authorisation as a crowdfunding service provider (including all the specific information and documentation requested therein).
Following this submission and once login details have been provided to the individual nominated by the applicant (in Section 2.8 (b) of the application form) to be responsible for ONR access, fully completed IQs (including all the specific information and documentation requested therein) must be submitted in respect to each person proposed to hold a PCF role in the Applicant.
The Central Bank will acknowledge receipt of the application form within ten working days of its receipt.
Within 25 working days of the receipt of the application form, the Central Bank assess whether the application is complete i.e. whether the application contains all the required information and documentation (which includes the information and documentation required in the application form and the IQ).
IQs:
Stage 3 – Assessment of the Application
Where an application has been received and deemed complete, as outlined in stage two above, the Central Bank will then proceed to the assessment phase of the application process.
In order to be in a position to meet the assessment timeframes for authorisation as set out in Regulation (EU) 2020/1503, the Central Bank cannot engage in an exhaustive verification exercise of the information provided by the applicant in its application. The onus is on the applicant to ensure all information in the application form and IQs and all supporting information submitted meets the relevant requirements.
The board of directors of the applicant must provide an attestation on the headed paper of the applicant and signed by two directors of the applicant confirming certain matters on behalf of the applicant. More information on the Attestation is outlined in the Guidance Note on Completing an Application for Authorisation for Authorisation as a crowdfunding service provider and in Appendix 1 of the Application Form.
Stage 4 – Decision on Authorisation
The Central Bank will make a determination on the Application within three months of receipt of a complete application, as referred to above.
Successful applicants are issued with a letter of authorisation from the Central Bank setting out their authorisation requirements and any conditions of authorisation applicable.
Stage 1 – Preliminary Meeting
The applicant requests a preliminary meeting with the Central Bank to discuss its proposed application. A meeting request should be set out, at a high level, the proposed authorisation being sought.
The Central Bank will revert to the applicant to schedule the preliminary meeting.
The applicant is required submit a short presentation and a list of attendees five business days in advance of the preliminary meeting with the Central Bank. The presentation should be reasonably high level and include, where relevant, the following:
- High level background information on the applicant (and group where applicable) e.g. business line and history
- Rationale for selecting Ireland as their European place of business
- Proposed business lines (new) and current track record (if existing firm)
- Description of the services/activities (including other services / activities as outlined in Section 4.1.1 (c) of the Application Form) to be provided by the Applicant at authorisation date and those services / activities the Applicant will look to provide in the future (if known)
- Staffing and governance proposals
- Details of any proposed outsourcing arrangements
- Revenue and Regulatory Capital projections
- Any other information that the Applicant Firm considers pertinent.
At the preliminary meeting, the applicant will be informed of the Central Bank’s authorisation process and timeframes.
Stage 2 – Submission and Completeness Check of Application Form and Individual Questionnaires
Should the applicant wish to proceed to make an application for authorisation after the preliminary meeting with the Central Bank, the applicant will need to submit a fully completed Application Form for Authorisation as a crowdfunding service provider (including all the specific information and documentation requested therein).
Following this submission and once login details have been provided to the individual nominated by the applicant (in Section 2.8 (b) of the application form) to be responsible for ONR access, fully completed IQs (including all the specific information and documentation requested therein) must be submitted in respect to each person proposed to hold a PCF role in the Applicant.
The Central Bank will acknowledge receipt of the application form within ten working days of its receipt.
Within 25 working days of the receipt of the application form, the Central Bank assess whether the application is complete i.e. whether the application contains all the required information and documentation (which includes the information and documentation required in the application form and the IQ).
- Incomplete applications: where all the required information and documentation has not been provided, the Central Bank will identify the missing information and set a deadline for the applicant to provide the missing information. Should an application remain incomplete after this deadline, the Central Bank may refuse to review the application and, in the event of such refusal, shall return the submitted documents to the applicant.
- Complete applications: an application is deemed complete when the applicant has provided all of the information required under Article 12 (2) of Regulation (EU) 2020/1503 (which includes the information required in the Application Form and the IQ). Where an application is deemed complete, the Central Bank will notify the applicant. The Central Bank will then complete an assessment of the application and may issue detailed comments and/or seek additional information.
IQs:
- IQs should be submitted electronically via the Central Bank’s Online Reporting System by all proposed PCF role holders.
- The applicant shall ensure that all the information and documentation requested in the IQ is submitted by all proposed PCF role holders in order that fully completed IQs are deemed to have been received.
Stage 3 – Assessment of the Application
Where an application has been received and deemed complete, as outlined in stage two above, the Central Bank will then proceed to the assessment phase of the application process.
In order to be in a position to meet the assessment timeframes for authorisation as set out in Regulation (EU) 2020/1503, the Central Bank cannot engage in an exhaustive verification exercise of the information provided by the applicant in its application. The onus is on the applicant to ensure all information in the application form and IQs and all supporting information submitted meets the relevant requirements.
The board of directors of the applicant must provide an attestation on the headed paper of the applicant and signed by two directors of the applicant confirming certain matters on behalf of the applicant. More information on the Attestation is outlined in the Guidance Note on Completing an Application for Authorisation for Authorisation as a crowdfunding service provider and in Appendix 1 of the Application Form.
Stage 4 – Decision on Authorisation
The Central Bank will make a determination on the Application within three months of receipt of a complete application, as referred to above.
Successful applicants are issued with a letter of authorisation from the Central Bank setting out their authorisation requirements and any conditions of authorisation applicable.
To discuss how to apply for your crowdfunding authorisation and/or whether you fall under the Transitional Period contact Peter Oakes at CompliReg by email office@complireg.com. And see below for other Relevant Material from CompliReg on crowdfunding, including our webinar.
Peter Oakes and CompliReg are currently working with several crowdfunding service providers on their strategies and applications for authorisation.
Peter Oakes and CompliReg are currently working with several crowdfunding service providers on their strategies and applications for authorisation.
Relevant Material
Following our successful Crowdfunding webinar with Fintech Ireland on Tuesday 27 April 2021, the CompliReg team has been busy advising firms looking to obtain authorisation under the EU’s new Crowdfunding Service Providers Regulation.
We have assisted clients with advice on the Regulation, the draft Regulatory Technical Standards and arranged and attended meetings with the Central Bank of Ireland’s Innovation Hub and Regulatory teams on preliminary application issues.
We have assisted clients with advice on the Regulation, the draft Regulatory Technical Standards and arranged and attended meetings with the Central Bank of Ireland’s Innovation Hub and Regulatory teams on preliminary application issues.
Next steps - complete the Authorisation / Licence at the bottom of this page.
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27 April 2021 - ROUNDTABLE: Project Crowdfunding - A new Regulated Industry for the EU and Ireland
We hope you enjoyed our co-hosted webinars with Fintech Ireland on 27 April 2021. The YouTube video has been watched 4,500+ times.
Contact us at office@complireg.com for more information and/or complete the Authorisation / Licence Enquiry Form on this page to start a discussion on how we can assist you.
If you missed the event, or you want to check some of the points we covered, you can watch the recording and access the slides from Tuesday 27th April 2021 below. And scroll down this page for more relevant information on getting authorised / registered in Ireland.
Contact us at office@complireg.com for more information and/or complete the Authorisation / Licence Enquiry Form on this page to start a discussion on how we can assist you.
If you missed the event, or you want to check some of the points we covered, you can watch the recording and access the slides from Tuesday 27th April 2021 below. And scroll down this page for more relevant information on getting authorised / registered in Ireland.
Peter, great webinar yesterday! Really informative and helpful for some of our projects. Crypto Asset & Blockchain Expert
Visit Fintech Ireland for full details of the above event, including slides and other material.
Our team advises on banking, MiFID, Electronic Money and Payments and Crowdfunding authorisations and VASP registrations in Ireland, the United Kingdom, Lithuania, Cyprus and Malta.
We have developed a diverse range of legal, accounting, technical and support experts in each jurisdiction through our support of fintech networks including:
Each client is different and therefore we tailored our services to the clients needs. Our Authorisation services are generally sought as follows:
We also work with clients where they have been let down by consultants/advisers, to rebuild trust with the regulator and deliver an improved application to the regulator.
Another service we assist with is helping clients identify persons to fulfil senior management and board director positions at payments, electronic money, crowdfunding and MiFID firms.
Scroll down this page for information on getting authorised, our resources to help you understand the process and the form to complete to request our services. See our dedicated Payments & Emoney page, Crowdfunding page and Virtual Asset Service Provider page. And read our blogs too. We hope they help and we hope you choose us to help you get licensed!
We have developed a diverse range of legal, accounting, technical and support experts in each jurisdiction through our support of fintech networks including:
Each client is different and therefore we tailored our services to the clients needs. Our Authorisation services are generally sought as follows:
- A pre-regulatory filing review of the client's application ahead of it filing its application with the regulator;
- Assisting the client prepare its application to the regulator;
- Once the application is filed, assisting the client through the assessment phase all the way to authorisation.
We also work with clients where they have been let down by consultants/advisers, to rebuild trust with the regulator and deliver an improved application to the regulator.
Another service we assist with is helping clients identify persons to fulfil senior management and board director positions at payments, electronic money, crowdfunding and MiFID firms.
Scroll down this page for information on getting authorised, our resources to help you understand the process and the form to complete to request our services. See our dedicated Payments & Emoney page, Crowdfunding page and Virtual Asset Service Provider page. And read our blogs too. We hope they help and we hope you choose us to help you get licensed!
Authorisation / Licence Enquiry
Please complete the below in as much detail as possible. You can email us at office@complireg.com with questions, however we need you to complete this form to start the authorisation review.
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