ESMA_QA_823
23/09/2022
Subject Matter
Investor protection and marketing communication
    Can a CSP prevent a prospective non-sophisticated investor or non-sophisticated investor from investing on the basis of the result of the simulation of the ability to bear loss referred to in Article 21(5) of the ECSPR.
    ESMA Answer
    23-09-2022

      (Published as Crowdfunding Q&A 5.10)

      No. The simulation of the ability to bear loss is a self-assessment to be performed by prospective non-sophisticated investors or non-sophisticated investors in their own interest. It is not intended to be a ground to prevent prospective non-sophisticated investors or non-sophisticated investors from investing. However, in accordance with Article 21(5) and 21(6) non-sophisticated investors shall acknowledge they have received the results of the simulation.

      Status: Answer Published

      Additional Information

      Level 1 Regulation
      Regulation 2020/1503 - European crowdfunding service providers for business
      Topic
      Information to clients on topics other than costs and charges