The Delegated Regulation (EU) 2024/358 was approved, which sets forth the applicable requirements:
(i) On crowdfunding projects credit rating;
(ii) On the pricing of crowdfunding offers; and
(iii) On risk management policies and procedures.
This delegated act complements Regulation (EU) 2020/1503 on the activity of providers of equity or loan crowdfunding services in the European Union by implementing Regulatory Technical Standards (RTS) that establish certain obligations for crowdfunding service providers.
In terms of new provisions, we highlight the following:
- The information to be disclosed to investors on the methods used to calculate the credit score of such projects and to suggest the price of crowdfunding offers;
- The internal governance mechanisms and processes to support the disclosure of information to investors, the assessment of credit risk and the evaluation of loans, as well as the risk management framework;
- The factors that these service providers must take into account to ensure fair and appropriate pricing of the products made available on their platforms.
It is also established that, throughout the financing's lifecycle, several evaluations of the loan must be carried out and that the methods for assessing creditworthiness must be proportionate to its size, type and maturity, as well as to the characteristics of the project's owner.
The Delegated Regulation (EU) 2024/358 enters into force on 11 February 2024 and is available here.
