Regulating Crowdlending: A Critical Analysis of the European Union?s ECSPR

Abstract

In 2020, the EU made its first foray into crowdlending regulation with the European Crowdfunding Service Providers for Business Regulation. This thesis explores whether the ECSPR has adequately responded to its regulatory goals. This central research question is answered in three steps. First using regulatory theory and financial regulatory theory, the ECSPR's regulatory goals are mapped against the financial regulatory goals and regulatory goals. Second, the ECSPR itself is examined to see how the ECSPR has responded to its regulatory goals. Third, the ECSPR?s response to each of its regulatory goals is compared to crowdlending regulatory frameworks internationally to find how other jurisdictions have achieved goals that are similar or closely related to the ECSPR?s goals. These jurisdictions are Australia, New Zealand, the UK, and the US. The comparative analysis answers whether the ECSPR is adequate in responding to its regulatory goals. This thesis concludes that there is no definitive yes or no answer to the central research question.