FCMC issues the first EU-wide authorisation to provide crowdfunding services in Latvia to SIA CrowdedHero Latvia
The FCMC is one of the first supervisory authorities to issue such authorisation to provide crowdfunding services.
The commercial activities of SIA CrowdedHero Latvia aim to provide crowdfunding services in projects based on capital investments. The plans to attract investment concern start-ups and mature companies, as well as small and medium-sized enterprises with an existing cash flow matching the business model established by SIA CrowdedHero Latvia.
Both inexperienced and experienced investors will be entitled to invest; however, the primary target market will be natural persons residing in the countries of the European Economic Area, aged 25–45 and looking for an alternative crowdfunding investment platform with a regular profit distribution in the form of dividends. The expected minimum investment – starting from 100 euro.
After adopting the decision to issue the authorisation to provide crowdfunding services to SIA CrowdedHero Latvia, the FCMC ensures that a notification is sent to the European Securities and Markets Authority which will enter the respective service provider in a uniform register of crowdfunding service providers.
The Law on Crowdfunding Services took effect on 5 May 2022. It establishes the procedure for issuing and registering the authorisation to provide crowdfunding services, the operation and liability of the crowdfunding services providers pursuant to Regulation (EU) 2020/1503, as well as the rights, obligations and mandate of the FCMC as the competent supervisory authority to issue regulatory framework binding on the crowdfunding service providers.
A crowdfunding service provider is an intermediating organisation that brings together a project owner looking for financing and investors wishing to finance a business project developed by the project owner.
In order to provide crowdfunding services in Latvia, a crowdfunding service provider has to obtain an authorisation issued by the FCMC. Information on the authorisation requirements and a road map is available on the FCMC website.