On 9 November 2021, the European Banking Authority (EBA) published its final report on draft regulatory technical standards (RTS) specifying the information that crowdfunding service providers offering individual portfolio management of loans shall provide to investors in relation to the method to assess credit risk, and on each individual portfolio. The draft RTS also specify the policies, procedures and organisational arrangements that crowdfunding service providers shall have in place in relation to any contingency fund they may offer to investors. These draft RTS are the first of two mandates assigned to the EBA with a view to contributing to a sound prudential and disclosure framework for crowdfunding service providers.
The draft RTS have been developed according to Articles 6(7) of the European Crowdfunding Service Providers Regulation (ECSPR), which mandates the EBA to develop, in close cooperation with the European Securities and Market Authority, draft RTS to specify:
- The elements, including the format, that are to be included in the description of the method used for the assessment of credit risk of i) individual crowdfunding projects selected for the investor’s portfolio; ii) individual portfolios; iii) the project owners selected for the investor’s portfolio as referred in Article 6(2) of ECSPR.
- The information that the crowdfunding service provider should provide to investors on each individual portfolio as referred in Article 6(4) of ECSPR.
- The policies, procedures and organisational arrangements that crowdfunding service providers are to have in place as regards any contingency funds they might offer as referred to in Articles 6(5) and 6(6) of ECSPR.