The ECSPR: a European framework to secure crowdfunding
Adopted in 2020 and fully applicable since November 2023, the European Crowdfunding Service Providers Regulation (ECSPR — EU 2020/1503) now governs the activity of crowdfunding platforms across the European Union.
For the first time, a harmonised framework applies to all players, with a dual objective: strengthening investor protection and enabling the development of crowdfunding at a European scale.
Among its key requirements is the need to anticipate the continuity of operations in the event of a cessation of activity.
A clearly defined continuity obligation
The regulation requires platforms to put in place arrangements to ensure the continuity of essential services in the event of failure.
In practice, each platform must be able to demonstrate that it can:
- Ensure the monitoring of ongoing projects
- Manage investor repayments
- Guarantee access to data and documents
- Maintain the continuity of financial flows
These requirements form part of a Business Continuity Plan (BCP), which is a core element of the authorisation dossier.
However, the regulation does not prescribe a single solution: the platform may organise this arrangement internally or rely on an external provider.
Run-off management: an operational mechanism
Beyond the theoretical framework, regulators expect a genuinely deployable mechanism.
Run-off management corresponds to the concrete implementation of this continuity. It involves:
On the technical level — the ability to transfer and operate data (investors, contracts, schedules) within a functional environment.
On the operational level — the continuation of repayments, project monitoring and the provision of user access.
On the regulatory level — compliance with obligations relating to data protection, regulatory compliance and traceability.
A key point concerns data quality: without complete and usable data, continuity cannot be effectively ensured.
Heightened expectations across Europe
The transition to the CSP status under the ECSPR has raised expectations regarding continuity across all EU member states.
National competent authorities (NCAs) examine the robustness of the arrangement when processing authorisation applications. An insufficiently structured or unverifiable plan may result in requests for additional information, or even a refusal.
In practice, it is not enough to describe an arrangement: the platform must be able to prove that it works.
The value of structured solutions such as Run Off
To meet these requirements, some platforms choose to rely on dedicated solutions such as Run Off.
This type of arrangement enables platforms to anticipate run-off management well in advance, notably through:
- Regular data audits to guarantee data quality
- Transfer tests to verify data usability
- An environment ready to be activated when needed
This approach transforms a regulatory obligation into an operational mechanism that can be demonstrated to regulators.
Conclusion
The ECSPR has fundamentally transformed the crowdfunding framework in Europe.
Run-off management is no longer simply a best practice: it is now one of the fundamental requirements for operating.
For platforms, the challenge is not only to have a plan, but to be able to demonstrate that it is genuinely functional on the day it becomes necessary.
