{
  "url": "https://openlegislation.uk/eu-directive-2020-1504/introduction",
  "json_url": "https://openlegislation.uk/eu-directive-2020-1504/introduction.json",
  "legislation": "eudr/2020/1504",
  "legislation_title": "Directive (EU) 2020/1504 of the European Parliament and of the Council of 7 October 2020 amending Directive 2014/65/EU on markets in financial instruments (Text with EEA relevance)",
  "legislation_url": "https://openlegislation.uk/eu-directive-2020-1504",
  "path": "introduction",
  "kind": "introduction",
  "number": null,
  "heading": "Introductory text",
  "text": "Directive (EU) 2020/1504 of the European Parliament and of the Council\nof 7 October 2020\namending Directive 2014/65/EU on markets in financial instruments\n(Text with EEA relevance)\nTHE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,\nHaving regard to the Treaty on the Functioning of the European Union, and in particular Article 53(1) thereof,\nHaving regard to the proposal from the European Commission,\nAfter transmission of the draft legislative act to the national parliaments,\nAfter consulting the European Central Bank,\nHaving regard to the opinion of the European Economic and Social Committee,\nActing in accordance with the ordinary legislative procedure,\nWhereas:\n(1)\nCrowdfunding is a financial technology solution that provides small and medium-sized enterprises (SMEs) and, in particular, start-ups and scale-ups, with alternative access to finance in order to promote innovative entrepreneurship in the Union, thereby strengthening the Capital Markets Union. That in turn contributes to a more diversified financial system that is less dependent on bank finance, therefore limiting systemic and concentration risks. Other benefits of promoting innovative entrepreneurship through crowdfunding are the unlocking of frozen capital for investment in new and innovative projects, the acceleration of efficient allocation of resources and a diversification of assets.\n(2)\nRegulation (EU) 2020/1503 of the European Parliament and of the Council lays down uniform, proportionate and directly applicable requirements for the provision of crowdfunding services, for the organisation, authorisation and supervision of crowdfunding service providers, for the operation of crowdfunding platforms as well as for transparency and marketing communications in relation to the provision of crowdfunding services in the Union.\n(3)\nTo provide legal certainty as to the persons and activities falling within the scope of Regulation (EU) 2020/1503 and of Directive 2014/65/EU of the European Parliament and of the Council, respectively, and in order to avoid a situation where the same activity is subject to multiple authorisations within the Union, legal persons authorised as crowdfunding service providers under Regulation (EU) 2020/1503 should be excluded from the scope of Directive 2014/65/EU.\n(4)\nAs the amendment provided for in this Directive is directly linked to Regulation (EU) 2020/1503, the date from which Member States are to apply the national measures transposing this Directive should be deferred in order to coincide with the date of application set out in that Regulation,\nHAVE ADOPTED THIS DIRECTIVE:",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "footnote",
      "label": "f1",
      "text": "OJ C 367, 10.10.2018, p. 65."
    },
    {
      "type": "footnote",
      "label": "f2",
      "text": "Position of the European Parliament of 27 March 2019 (not yet published in the Official Journal) and position of the Council at first reading of 20 July 2020 (not yet published in the Official Journal). Position of the European Parliament of 5 October 2020 (not yet published in the Official Journal)."
    },
    {
      "type": "footnote",
      "label": "f3",
      "text": "Regulation (EU) 2020/1503 of the European Parliament and of the Council of 7 October 2020 on European crowdfunding service providers for business, and amending Regulation (EU) 2017/1129 and Directive (EU) 2019/1937 (See page 1 of this Official Journal)."
    },
    {
      "type": "footnote",
      "label": "f4",
      "text": "Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (OJ L 173, 12.6.2014, p. 349)."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/eudr/2020/1504/introduction",
    "retrieved_at": "2026-11-01T15:21:23.199088+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}