Jurisdiction(s):
European Union

EU crowdfunding regulation: ECSP (Regulation 2020/1503), MiFID II exclusion and Level 2 RTS/ITS—scope, authorisation, investor protection, marketing, supervision, penalties, and UK response

Published by a LexisNexis EU Law expert

Practice notes

Scope of this Practice Note

This Practice Note examines EU supervision of crowdfunding platforms from a financial services angle, centring on Regulation (EU) 2020/1503 (the ECSP Regulation). It summarises the actions taken by EU institutions in this field and notes the UK government’s response. It also outlines the subordinate level 2 measures the European Commission must adopt under PSD2, and provides a concise overview of the level 3 material released by the European Securities and Markets Association (ESMA). The Note additionally highlights which forms of crowdfunding fall within, and which lie outside, the scope of regulation, with further detail in Practice Note: The UK regulation of crowdfunding platforms—essentials.

Types of crowdfunding

There are three main forms of crowdfunding, each defined by what the funder receives:

Investment model — individuals invest in return for a share of the profits or revenue generated by the company or project
Lending model — individuals lend money to a company or project in return for repayment of the loan and interest on their investment
Donations or rewards model — individuals provide money to a company or project for benevolent reasons or for a non-monetary reward...

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Web page updated on 21/05/2026

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