In 2019, the Swedish Financial Services Authority (Finansinspektionen) authorised Trine as a payment institution. Trine therefore has permission to conduct payment services in accordance with the Payment Services Act (2010:751), under the supervision of the Swedish Financial Services Authority and Crowdfunding Services according to EU regulation 2020/1503.

You can read more about Finansinspektionen here.

1. What is the EU Crowdfunding Service Provider licence (ECSP)?

The European Union (EU) and its member states established the Crowdfunding Licence (ECSP), which is the regulatory framework that governs crowdfunding activities. It seeks to regulate and safeguard investors in the crowdfunding market.

2. Why was the Crowdfunding licence introduced?

Before the introduction of the crowdfunding licence, there were no specific regulations governing crowdfunding activities across the EU. This licence was introduced and mainly focuses on investor protection and eliminating potential conflicts of interest on crowdfunding platforms.

3. How has Trine responded to the Crowdfunding licence?

While the licence has introduced certain requirements, it has not significantly altered Trine's business operations. You may have noticed some minor changes to the investor experience around onboarding and descriptions of crowdfunding offers. Since Trine was already regulated as a payment institution, we already complied with many of the requirements.

4. What changes can investors expect due to the crowdfunding licence?

Investors may notice changes in the onboarding process, such as the requirement to perform a loss simulation. Additionally, loan offer pages may include additional disclaimers to provide investors with more information. These changes are aimed at enhancing investor protection and transparency and helping investors compare between crowdfunding providers.

5. What are the benefits of the Crowdfunding licence for Trine and its investors?

We know that investors are putting their trust in Trine to seek out good opportunities for investment; therefore, we think that the fact that the Swedish Financial Supervisory Authority has given Trine a licence should improve that trust further. More generally, the crowdfunding licence not only enhances investor protection but also provides a clear regulatory framework for crowdfunding platforms. It promotes transparency, credibility, and trust within the crowdfunding industry, benefiting both platforms like Trine and the investors they serve. You can read more about the EU crowdfunding licence here.

At Trine, we are committed to transparency, regulatory compliance, and safeguarding your investment journey. If you have any questions or concerns, we are here to help. Reach out to us at hello@trine.com.