ESMA_QA_825
23/09/2022
Subject Matter
Investor protection and marketing communication
Original question
Can a CSP accept the investment of a prospective non-sophisticated investor or non-sophisticated investor in cases where such investor (i) wants to invest an amount in excess of the higher of EUR 1,000 or 5% of that investor’s net worth but (ii) does not meet the conditions set out in points (a), (b) and (c) of Article 21(7)?
ESMA Answer
23-09-2022
Original language
(Published as Crowdfunding Q&A 5.12)
No, in such case, the CSP shall prevent the prospective non-sophisticated investor or non-sophisticated investor from investing. Indeed, as indicated by the European Commission in its answer to Question 5.1. [Q&A 814], Article 21(6) second paragraph which provide that prospective non-sophisticated investors and non-sophisticated investors shall not be prevented from investing does not apply to the specific situation of Article 21(7) of the ECSPR.
When preventing a prospective non-sophisticated investor or non-sophisticated investor from investing, the CSP shall clearly indicate to the investor that it acts on the basis of applicable regulatory requirements aiming at the protection of investors.
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