ESMA · ESMA_QA_826 Answer Published

Investor protection and marketing communication

Name: Investor protection and marketing communication: ESMA Q&A — EU Financial Regulatory Q&A
Creator: European Securities and Markets Authority
License: https://creativecommons.org/licenses/by/4.0/

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 the condition set out in point (c) of Article 21(7) be fulfilled through other means than using the assessment referred to in Article 21(1) of the ECSPR as a proof that the prospective non-sophisticated investor or non-sophisticated investor understands the investment and its risks?

Answer

(Published as Crowdfunding Q&A 5.13) Yes. The condition set out in point (c) of Article 21(7) may be fulfilled through any means deemed relevant by the CSP for that purpose where those means ensure that the CSP may reasonably determine whether the investor understands the investment and its risks.

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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.