With the change of year, the new European regime for operating of crowdfunding platforms has become applicable in Austria. The new regime is intended to simplify crowdfunding within the European Union – especially on a cross-border basis – by making it possible for specialised platforms to offer their services throughout the entire EU Single Market. As a result the pool of potential investors for start-ups, innovators and small enterprises is increased and the investors have access to a wider selection of projects as well as better protection. The Act for Implementing the EU Crowdfunding Regulation[1] into Austrian law entered into force on 31 December 2021 and has defined the Austrian Financial Market Authority (FMA) as the national competent authority for implementing the Crowdfunding Regulation. The FMA is thereby competent for the authorisation of and ongoing supervision of providers of crowdfunding platforms in Austria.
The new European crowdfunding regime
The EU Crowdfunding Regulation creates a new European supervisory regime for the operation of intermediary online platforms. Depending on the scope of the authorisation, transferable securities (for example bonds and shares) may be placed or mediated via such platforms for financing projects. Funding in the form of loans that are gathered from the public over the platform are also possible. Furthermore, where the necessary authorisation is held, platforms may also provide the individual portfolio management of loans to their clients. Only entrepreneurs shall be allowed to act as project owners on such primary market platforms and the platform operator shall not be allowed to participate in brokered projects or in project owners to a significant extent. In addition, information and conduct obligations shall apply depending on the service provided. In particular, project owners shall be required to provide a key investment information sheet containing the most important information about the investment.
Austrian specificities
“Peer-to-peer” models shall however continue to not fall within the scope of the Crowdfunding Regulation, where there is no platform involved; similarly the brokering by means of a platform for the funding method that is popular in Austria by means of issuance of investments in accordance with the Capital Market Act 2019 (KMG 2019; Kapitalmarktgesetz 2019), especially subordinated loans, shall continue to fall within the scope of the Alternative Financing Act. The regulation and supervision of such products shall remain under the competence of the local administrative authorities, rather than those of the FMA.
FMA Registration
Following the entry into force of the Crowdfunding Regulation Implementation Act on 31.12.2021, it is now possible to submit an application to the FMA for authorisation as a crowdfunding service provider pursuant to the EU Crowdfunding Regulation. Due to the technical complexity and newness of such business models, the FMA recommends to check out the possibility to participate in its Regulatory Sandbox as a regulatory point of entry. Authorisation as a crowdfunding service provider also for the first time allows enterprises to offering crowdfunding services on a cross-border basis at European level by means of a notification (“Single Passport Principle”).
More information:
- FMA Regulatory Sandbox
- Parties interested applying for an authorisation may contact the FMA via its mailbox at [email protected]
Journalists may address further enquiries to:
Klaus Grubelnik (FMA Media Spokesperson)
+43 (0)676 88249516
+43 (0)1 249 59 – 6006
[1] Regulation (EU) 2020/1503 on European crowdfunding service providers for business