EN ECB-PUBLIC  
OPINION OF THE EUROPEAN CENTRAL BANK  
of 28 March 2022  
on authorisation of credit institutions to provide crowdfunding services  
(CON/20 22/13) 
Introduction and legal basis  
On 21 February 2022 the European Central Bank (ECB) received a request from the Bulgarian Minister for  
Finance for an opinion on a draft law amending the law on public offering of securities1 and other laws  
(hereinafter the ‘draft law’) . 
The ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the 
Functioning of the European Union  and the third  indent of Article 2(1) of Council Decision 98/415/EC2, as 
the draft  law relates to Българска народна банка (Bulgarian National Bank, BNB) as well as the ECB’s 
tasks concerning the prudential supervision of credit institutions pursuant to Article 127(6) of the Treaty . In 
accordance with the first sentence of Article 17.5 of the Rules of Procedure of the European Central Bank, 
the Governing Council has adopted this opinion.  
1. P
urpose of the draft law
The main purpose of the draft law is to introduce into Bulgarian law technical implementing measures
necessary in order to comply with Regulation (EU) 2020/1503 of the European Parliament and of th e
C
ouncil3. In particular, the draft law designates Комисия за финансов надзор  (Financial Supervisi on
C
ommission (FSC) ) as the competent authority responsible for authorising an entity as a crowdfundin g
s
ervice provider and confers on the FSC supervisory, investigatory and sanctioning powers in relation to
compliance with the requirements of Regulation (EU) 2020/1503 and of the draft law.  The draft law
introduces one exception to this general rule, by conferring on BNB the task to authorise and withdraw th e
aut
horisation for  credit institutions to perform the activity of crowdfunding service providers. To this end t he
dr
aft law supplements Article s 2(2) and 103(10) of the Law on credit institutions4.
1 Law on public offering of securities (Закон за публичното предлагане на ценни книжа , обн. ДВ, бр. 114 от 
30.12.1999  г.). 
2 Council Decision 98/415/EC of 29  June 1998 on the consultation of the European Central Bank by national authorities 
regarding dr aft legislative provisions (OJ L 189, 3.7.1998, p. 42). 
3  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 
(OJ L 347, 20.10.2020, p. 1).  
4 Law on credit institutions (Закон за кредитните институции, обн. ДВ, бр. 59 от 21.07.2006 г.).  
ECB-PUBLIC  
2 2. Specific observations
2.1 Regulation (EU) 2020/1503 must be interpreted in line with Directive 2013/36/EU of the European
Parliament and of the Council5, to which it refers6. In particular , while Regulation (EU) 2020/1503 
refers to credit institutions acting as crowdfunding service providers7, it does not affect in any way 
the authorisation requirements under Directive 2013/36/EU. Whether a credit institution has applied 
for and has obtained an authorisation to provide crowdfunding services8 or whether authorisation to 
provide such services has b een withdrawn9 does not affect the authorisation of such credit institution 
granted in accordance with Directive 2013/36/EU10. 
2.2 Within the Single Supervisory Mechanism Article  4(1)(a) of Council Regulation (EU) No 1024/201311 
gives the ECB the exclusive task of authorising credit institutions and withdrawing authorisations of credit institutions.  Close cooperation between the ECB and BNB started on 1 October 2020
12 and 
the Republic of Bulgaria is a participating Member State w ithin the meaning of  Regulation (EU) 
No 1024/2013.  
2.3 The draft law’s provisions la ying down technical implementing measures for Regulation (EU) 
2020/1503 regarding the authorisation and the withdrawal of the authorisation for credit institutions 
to perform the activity of crowdfunding service providers  must be interpreted in  accordance  with 
Directive  2013/36/EU  and Regulation (EU) No  1024/2013. In accordance with Article 6(4) of 
Regulation (EU) No 1024/2013, the ECB exercises its  responsibility  under Article  4(1)(a) of that 
Regulation in respect of both significant and less significant institutions. This task is exercised for all 
banking activities listed in Annex I to Directive 2013/36/EU as well as for any additional activity  for 
which an authorisation is required under national law13, insofar as this authorisation requirement 
underpins a prudential supervisory function under U nion law14.  
2.4 The provision of crowdfunding services is not included in Annex I to  Directive 2013/36/EU , and the 
authorisation requirement for crowdfunding services does not underpin a prudential supervisory function under Union law. 
5 Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit 
institutions and the prudential supervision of credit institutions, amending Directive 2002/87/EC and repealing 
Directives 2006/48/EC and 2006/49/EC  (OJ L 176, 27.6.2013, p. 338) . 
6 See for example r ecital  35 of Regulation (EU) 2020/1503 . 
7 Article 1(3) of Regulation (EU) 2020/1503.  
8 Article 12(14) of Regulation (EU) 2020/1503.  
9 Article 17 of Regulation (EU) 2020/1503.  
10 See also recital 9 of Regulation (EU) 2020/1503.  
11 Council Regulation (EU) No 1024/2013 of 15 October 2 013 conferring specific tasks on the European Central Bank 
concerning policies relating to the prudential supervision of credit institutions (OJ L 287, 29.10.2013, p. 63).  
12 Decision (EU) 2020/1015 of the European Central Bank of 24 June 2020 on the establishment of close cooperation between the European Central Bank and Българска народна банка (Bulgarian National Bank) (ECB/2020/30) 
(OJ L 224I, 13.7.2020, p. 1).  
13 See paragraph 3.1 of Opinion CON/2019/1 and paragraph 3.1 of Opinion CON/2021/26. All ECB opinions are published on EUR -Lex. 
14 See ECB Guide to assessments of licence applications, January 2019, paragraph 4.3.  
https://www.bankingsupervision.europa.eu/ecb/pub/pdf/ssm.201901_guide_assessment_credit_inst_licensing_appl.en.pdf  
ECB-PUBLIC  
3 2.5 The main objective of Regulation (EU) 2020/1503 is to foster cross -border crowdfunding services by 
addressing the existing obstacles to the proper functioning of the internal market in crowdfunding 
services and ensuring a high level of investor protection15. The supervision of the activities under 
Regulation (EU) 2020/1503 is distinct from and without prejudice to the ECB’s prudential supervisory tasks under Regulation (EU) No 1024/2013. Accordingly , the purpose of the authorisation 
requirement set out in Article 12 of Regulation (EU) 2020/1503 is to facilitate cross -border provision 
of those services, reduce operational risks, and ensure a high degree of transparency and investor protection
16.  In this regard the competent authority assesses  the quality of the crowdfunding service 
provider’s management, internal organisation and procedures established to ensure compliance17. 
The requirements set out in Regulation (EU) 2020/1503 including the authorisation and withdrawal 
of authorisation for credit institutions to provide crowdfunding services , are therefore aimed at  
protecting investors . Accordingly, those requirements fall under the remit of national competent 
authorities  and not of the ECB. 
2.6 Accordingly,  the competence conferred on BNB by the draft law to authorise and to withdraw the 
authorisation for  credit institutions to provide crowdfunding services must  be without prejudice to the 
ECB’s competence to issue or  withdraw authorisations of credit institutions  pursuant to Directive 
2013/36/EU and Regulation (EU) No 1024/2013. 
3. T
asks of BNB
3.1 The provisions of the draft law relating to the new powers of BNB do not extend the currentsupervisory mandate of BNB . BNB is responsible for supervising credit institutions  and the tasks 
carrie d out by BNB in this regard are not limited to prudential supervisory purposes
18. 
3.2 The authorisation and the withdrawal of authorisation for credit institutions to provide crowdfunding 
services are not intrinsically distinct from the tasks already carried out by BNB with respect to the 
authorisation of  other activities  of credit instituti ons19. Moreover , in accordance with the proposed 
amendments to Articles 14(2) and 103(10) of the Law on credit institutions , BNB will rely on the 
assessment undertaken by the FSC where  it has been called upon to  both authorise and to withdraw 
the authorisation for  credit institutions to provide crowdfunding services20. BNB’s tasks in relation to 
such authorisation are therefore rather limited.  
3.3 It follows that the draft law does not confer genuinely new tasks on BNB, but rather specifies certain 
new powers that BNB may exercise  when carrying out the same category of tasks already  discharged 
in accordance with  the Law on credit institutions. Consequently, it is not necessary  to assess whether 
15 Recital 7 of Regulation (EU) 2020/1503 . 
16 Recital 30 of Regulation (EU) 2020/1503. 
17 Recital 34 of Regulation (EU) 2020/1503. 
18 Article 1(2) of the Law on credit institutions.  
19 Article 2(2)(9) of the Law on credit institutions.  
20 See proposed new Article 212a(3)  of the Law on public offering of securities, which provides that the FSC must  notify 
BNB of the application of supervisory measures in relation to a credit institution providing crowdfunding services.  
ECB-PUBLIC  
4 the conferral of new tasks on a national central bank complies with the prohibition of monetary 
financing in th is case21. 
T
his opinion will b e published on EUR -Lex. 
D
one at Frankfurt am Main, 28 March 2022. 
[
signed]  
T
he President of the ECB  
Christine  LAGARDE  
21 See paragraph 3. 3 of Opinion CON/20 17/36 and paragraph 5.2.1 of Opinion CON/2021/ 9.