Relevant European legislation is the MiFID II (Markets in Financial Instruments Directive). This MIFID II determines rules for investment firms and financial trading platforms, like crowdfunding platforms. Special licences are needed to be allowed to attract repayable funding and use it to invest in, or lend to, a project or company. For all the forms of community funding that are described in the scope of CROWDTHERMAL Direct lending, leasing, crowdfunding and social and green bonds this legislation is relevant as repayable funds will be attracted from community investors.
On 20 October 2020, Regulation (EU) 2020/1503 on European crowdfunding service providers for business (the “Crowdfunding Regulation”) and Directive (EU) 2020/1504 amending MiFID II (the “Crowdfunding Directive”) were published in the Official Journal of the European Union. Although the directive still has to be translated into national law by the Member states its general outlines are clear. This new regulation will determine the possibilities for a large part of community funding projects in Europe in the future.