Crowdrealestate has already applied for the European licence for crowdfunding service providers. This new legislation represents an expansion in terms of investor protection, transparency and operational processes. The increased standards will allow the AFM (Financial Markets Authority) to ensure that the same rules apply to crowdfunding service providers in all EU countries.
CSP licence
Parties in the Netherlands that focus on crowdfunding for business activities must hold the so-called Crowdfunding Service Provider licence (CSP licence) to be allowed to provide crowdfunding services. So too does Crowdrealestate. The AFM tests whether these parties meet the requirements and objectives of the European Crowdfunding Service Providers Regulation (ECSPR). The ECSPR is part of the European Capital Market Union which seeks to harmonise EU capital markets.
The new regulation places great emphasis on transparency for investors, requiring crowdfunding service providers such as Crowdrealestate to provide detailed information on projects. This provides investors with clear insight into projects, their prospects and associated risks. Another major change is the removal of the maximum investment amount for retail investors and that the maximum principal amount per project will be €5,000,000. This increases financial flexibility for investors, while encouraging platforms to further improve their offerings.
Enigma (part of Projective Group) guided Crowdrealestate in applying for this CSP licence. Crowdrealestate expects to obtain the licence no later than January 2024. During this interim period, the new licence will be implemented and the onboarding to the Payment Service Provider (PSP) will take place. The first projects for post-granting the new licence are already committed and in preparation.
Existing projects
Crowdrealestate's current waiver runs until 10 November 2023. Therefore, it is still possible to invest in the still available projects until 9 November 2023. These projects will continue in the usual manner up to and including the target redemption date. The projects placed before 10 November 2023 remain unchanged.
Payment Service Provider
One of the requirements of the CSP licence is the use of a payment service provider. This is because all payment flows must go through a payment service provider. Crowdrealestate has partnered with Online Payment Platform for this purpose. More information will follow soon. The payment flows of existing projects will continue to go through the notary's usual third-party account.
More information and private placements
In the coming period, we will share more detailed updates on the specific changes and opportunities brought about by the CSP licence. In addition, we will of course continue to offer private placements (starting from €100,000). If you are interested in these offers, you can apply via the messaging settings in your account. Should you have any interim questions, you can of course contact us.