Directive (EU) 2020/1504 amending Directive 2014/65/EU on markets in financial instruments

Summary:

Directive (EU) 2020/1504 adopted by the co-legislators on 7 October 2020, introducing a number of amendments to Directive 2014/65/EU in what concerns crowdfunding service providers. This is a text with EEA relevance.

Further information:

Directive 2014/65/EU introduced a legal framework aimed at better regulation of trading activities on financial markets as well as enhanced investor protection. The legal framework became known as 'MiFiD 2'.

In the interest of legal certainty and in order to avoid the application of requirements stemming from Directive 2014/65/EU on the markets in financial instruments to the provision of crowdfunding services, it is necessary to explicitly specify that Directive 2014/65/EU does not apply to persons authorised as crowdfunding service providers. To this end, this proposal exempts crowdfunding service providers from the obligations under Directive 2014/65/EU.

The draft law was adopted on 8 March 2018, as part of a legislative package relating to FinTech and the completion of the Capital Markets Union. The European Parliament's approved in first reading its position on the proposal on 27 March 2019. The Council of the European Union adopted its general approach on 26 June. Following an informal agreement between the co-legislators on a compromise text, the Council endorsed it on 20 July 2020, followed by the Parliament on 6 October. The Act was signed by the co-legislators on 7 October 2020 and published by the Official Journal on 20 October.

• Primary Source

Official

EUR-Lex: COM(2018)99: Proposal for a Directive amending Directive 2014/65/EU on markets in financial instruments http://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2018:099:FIN

EUR-Lex: SWD(2018)56: Impact assessment http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD:2018:056:FIN

EUR-Lex: SWD(2018)57: Executive summary of the impact assessment http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD:2018:057:FIN

European Parliament: Legislative Observatory: Procedure File for Proposal on markets in financial instruments: crowdfunding service providers https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?reference=2018/0047(COD)

European Parliament: Legislative Train Schedule: Crowdfunding: Amendments to the scope of Markets in financial instruments Directive (MiFID II) http://www.europarl.europa.eu/legislative-train/theme-deeper-and-fairer-internal-market-with-a-strengthened-industrial-base-financial-services/file-crowdfunding-mifid-ii

Council of the European Union: Press Release, 26/06/2019: Capital markets union: Council sets its position on easier access to crowdfunding platforms https://www.consilium.europa.eu/en/press/press-releases/2019/06/26/capital-markets-union-council-sets-its-position-on-easier-access-to-crowdfunding-platforms/

Council of the European Union: Press Release, 20/07/2020: Capital markets union: Council adopts new rules for crowdfunding platforms https://www.consilium.europa.eu/en/press/press-releases/2020/07/20/capital-markets-union-council-adopts-new-rules-for-crowdfunding-platforms/

European Parliament: Press Release, 06/10/2020: Final vote on EU rules for crowdfunding platforms https://www.europarl.europa.eu/news/en/press-room/20201002IPR88439/

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