ESMA · ESMA_QA_823 Answer Published

Investor protection and marketing communication

Regulation
Regulation 2020/1503 - European crowdfunding service providers for business
Topic
Information to clients on topics other than costs and charges
Submitted
2022-09-23
Answered
2022-09-23
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Question

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.

Answer

(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.
View original on European Securities and Markets Authority ↗

This Q&A is published by European Securities and Markets Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

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