Key factors of investors regulation in the analysed countries
| Reliability | Investment requirements | Suitability | Transparency and disclosure | |
|---|---|---|---|---|
| UK |
| (1) No limits for sophisticated and net-worth investors (2) Unsophisticated investors cannot invest more than 10% of their net investable assets within a 12-month period | Investors are required to self-certify their belonging to one of the investors' categories. Platforms must carry out a screening process to identify the non-sophisticated investors | Platforms must provide sufficient information about the nature and risks of crowdfunding investments (in a fair, clear and not misleading manner), to allow investors to make an informed investment decision |
| Germany | No restriction on investor type | (1) No limits for corporate entities (2) Individual investment limit of € 25,000 per investor per year | Investors must confirm the understanding of the information sheet (containing the warning notice about the risks associated with the investment and the potential total loss of the invested money) with a signature on it | Platforms providing investment advice must provide an investment information sheet (VIB) to potential investors, in good time prior to purchase of the investment |
| France | No restriction on investor type | No limits | Registration and suitability test for investors which must prove that they have been warned of and expressly accepted the risks | Platforms must publish on their website a set of mandatory information in an intelligible and visible manner |
| Italy |
| No limits Exemption from appropriateness test for investments below the following thresholds (1) single investment: €500 (for natural persons) and €5.000 (for legal entities) (2) annual total investment: €1.000 (for natural persons) and €10.000 (for legal entities) | Appropriateness test for retail investors which must read the financial investor education material published on CONSOB website and state their awareness about the risk of loss of their entire investment (conscious investment path) | For each offer, platforms must supply, in a brief and easily comprehensible form, information on investment risks, issuer, the financial instruments offered, and so on |
| Spain |
| For non-accredited investors: investment limit of € 3,000 per project up to € 10.000 per year on the same platform | Investors are required to self-certified their experience and knowledge (a test is not due). Platforms must properly identify their clients and verify that they are aware about the risks | Platforms must inform investors about the risks and the potential conflicts of interest. They must warn the investors, in a clear and understandable way, that platforms are not investment firms or credit institutions, and projects are not subject to authorization or supervision |
| Reliability | Investment requirements | Suitability | Transparency and disclosure | |
|---|---|---|---|---|
| UK | Sophisticated investors High-net-worth investors Unsophisticated investors | (1) No limits for sophisticated and net-worth investors | Investors are required to self-certify their belonging to one of the investors' categories. Platforms must carry out a screening process to identify the non-sophisticated investors | Platforms must provide sufficient information about the nature and risks of crowdfunding investments (in a fair, clear and not misleading manner), to allow investors to make an informed investment decision |
| Germany | No restriction on investor type | (1) No limits for corporate entities | Investors must confirm the understanding of the information sheet (containing the warning notice about the risks associated with the investment and the potential total loss of the invested money) with a signature on it | Platforms providing investment advice must provide an investment information sheet (VIB) to potential investors, in good time prior to purchase of the investment |
| France | No restriction on investor type | No limits | Registration and suitability test for investors which must prove that they have been warned of and expressly accepted the risks | Platforms must publish on their website a set of mandatory information in an intelligible and visible manner |
| Italy | Professional investors Retail investors | No limits | Appropriateness test for retail investors which must read the financial investor education material published on CONSOB website and state their awareness about the risk of loss of their entire investment (conscious investment path) | For each offer, platforms must supply, in a brief and easily comprehensible form, information on investment risks, issuer, the financial instruments offered, and so on |
| Spain | Accredited investors Non-accredited investors | For non-accredited investors: investment limit of € 3,000 per project up to € 10.000 per year on the same platform | Investors are required to self-certified their experience and knowledge (a test is not due). Platforms must properly identify their clients and verify that they are aware about the risks | Platforms must inform investors about the risks and the potential conflicts of interest. They must warn the investors, in a clear and understandable way, that platforms are not investment firms or credit institutions, and projects are not subject to authorization or supervision |
Source(s): Authors' elaboration
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