Operators of Crowdfunding Platform
Public list of Crowdfunding Platform Operators
Crowdfunding platform operator is a legal person administering a crowdfunding platform (information system in using which crowdfunding is used). A provider of investment services established in other Member States, where the licence of an investment service provider entitles it to provide investment services, may not have legal personality.
The activities of crowdfunding operators and the procedure of entering them on the Public List of Crowdfunding Platform Operators is regulated by The Republic of Lithuania Law on Crowdfunding (hereinafter ‘the Law’).
Entering on the Public list of Crowdfunding Platform Operators
A legal person established in the Republic of Lithuania aiming to be entered on the Public List of Crowdfunding Platform Operators shall address the supervisory authority and submit to it the following:
- an application for entering it on the Public List of Crowdfunding Platform Operators;
- documents, data and information about persons specified in Article 8(1) of the Law and their compliance with the requirements laid down in Article 8(1) of the Law;
- information about compliance with the prudential requirements laid down in Article 7 of the Law;
- a description of the crowdfunding platform operating model;
- regulations for the validation of project owners;
- a business continuity plan.
Requirements for participants and heads of a crowdfunding platform’s operator
A person meeting at least one of the conditions below cannot be the head of a crowdfunding platform operator, natural or legal person or a concurrently acting person, who directly or indirectly holds a share of the voting rights or authorised capital accounting for or exceeding 20 per cent, or who may have a direct or indirect decisive impact on the crowdfunding operator:
- it has been found guilty for committing a crime or a criminal offence related to money laundering or terrorist financing, a serious, very serious crime or offence or a criminal offence with respect to property, property rights and property interests, the economy and business practice, the financial system or equivalent criminal deeds under the criminal legislation of other countries, where its conviction has not expired or three years have not passed since the coming into force of the court’s ruling by which the person had been found guilty of the above criminal deeds;
- it has been subject to a penalty or an enforcement measure for breaching the requirements of a law or another legal act regulating the provision of financial services or the activities of financial institutions and, more than once over one year since the first penalty, was subject to an administrative penalty or another enforcement measure established by laws;
- it directly or indirectly manages or managed a qualifying holding in the authorised capital and/or voting rights or a holding entitling to making a decisive impact on a legal person, is or was the head of a legal person who was subject to an enforcement measure other than warning, where this enforcement measure was applied for breaching the provisions of laws or other legal acts regulating the provision of financial services and the activities of financial institutions and for this it was punished more than once over a year or where such breaching deprived it from the right to engage in the provision of financial services, or where that person was found guilty of the crime or criminal offence specified in Article 8(1)(1) of the Law or three years have not passed since the application of the enforcement measure or the coming into force of the court’s ruling by which the person was found guilty of the crime or criminal offence specified in Article 8(1)(1).
A crowdfunding platform operator must notify the supervisory authority of a future change of the head of the crowdfunding platform operator and submit information necessary to assess whether this person meets the requirements of paragraph 1 of this Article. The head of a crowdfunding platform operator may take up duties if it meets the requirements of paragraph 1 of this Article and only where the supervisory authority approves of the candidacy.
Levy for entering on the list
Prior to applying for being entered on the Public List of Crowdfunding Platform Operators is necessary to pay into the account of the State Tax Inspectorate (STI) a state levy for entering on the List, which is currently EUR 149 (the amounts of levies are fixed according to Resolution of the Government of the Republic of Lithuania No 1458 of 15 December 20001).
The procedure for the generation of online banking orders into the income collection accounts of the STI and the numbers of income collection accounts are available on the website of the STI.
1 – Available only in Lithuanian.
The supervisory authority shall, no later than within 30 business days of the receipt of an application and all documents, data and information material for assessment, carry out an assessment and take a decision on entering on the Public List of Crowdfunding Platform Operators and notify the applicant thereof. Where the supervisory authority requests additional documents, data and/or information material for assessment or where they are provided at the initiative of a person who submitted an application for being entered on the List of Crowdfunding Platform Operators, and /or where the supervisory authority applies to persons specified in Article 20 of the Law regarding submission of documents, data and/or information material for assessment, the decision regarding entering on the Public List of Crowdfunding Platform Operators shall be taken and the applicant shall be notified thereof no later than within 30 business days of the receipt of the additional documents, data and/or information material for assessment.
During the assessment period, the supervisory authority may, no later than within 20 business days of the receipt of the latest documents, data and/or information material for assessment, instruct the applicant in writing to eliminate deficiencies and/or submit additional documents, data and/or material necessary to complete the assessment. The deficiencies shall be eliminated and additional documents, data and/or information submitted within the time limit set by the supervisory authority, which shall not be shorter than 10 business days.
Laws and legal acts regulating the activities of crowdfunding platform operators and their entering on the Public List of Crowdfunding Platform Operators
- The Law on Financial Institutions of the Republic of Lithuania1;
- The Law on Companies of the Republic of Lithuania2;
- The Law on Crowdfunding of the Republic of Lithuania (48 KB );
- Resolution No 03-169 of the Board of the Bank of Lithuania of 29 November 2016 on the Approval of the Rules for Acceptability of Funding Transaction of Crowdfunding Platform Operators To the Funders and the Reliability Assessment of Project Owners;
- Resolution No 03-170 of the Board of the Bank of Lithuania of 29 November 2016 on the Approval of the Rules for the Provision of the Information of the Crowdfunding Platform Operators to the Bank of Lithuania;
- Resolution No 03-171 of the Board of the Bank of Lithuania of 29 November 2016 on the Approval of the Rules for Maintaining the Public List of the Crowdfunding Platform Operators (41.9 KB );
- Resolution No 03-181 of the Board of the Bank of Lithuania of 14 November 2013 on Approval of the Guidelines on the Assessment of Members of the Management Body and Key Function Holders of the Financial Market Participants Supervised by the Bank of Lithuania (94.6 KB );
- Resolution No 03-219 of the Board of the Bank of Lithuania on the Approval of the description of the Procedure for Implementing Requirements for the Participants of Consumer Credit Providers, Creditors, Peer-to-Peer Lending Platform Operators, Crowdfunding Platform Operators and Currency Exchange Operators (54 KB );
- Resolution No 58 of the Board of the Bank of Lithuania of 6 May 2004 on the approval of the General Regulations on the Submission and Examination of the Applications for Authorisations of the Financial Market Participants Supervised by the Bank of Lithuania and on the Granting of the Authorisations (62 KB ).
1 – Lithuanian consolidated version valid as of 1 March–30 June 2017. English version last amended on 12 March 2015.
2 – Lithuanian consolidated version valid as of 1 November 2016. English version last amended on 14 October 2014.