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Part V Protecting the Crowd Under the Crowdfunding Regulation and Beyond, 12 Investor Protection on Crowdfunding Platforms

Joseph Lee

From: The EU Crowdfunding Regulation

Edited By: Pietro Ortolani, Marije Louisse

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2023. All Rights Reserved.date: 04 March 2024

Subject(s):
Financial regulation — Alternative investment fund

This chapter describes the protection of investors on crowdfunding platforms under the Crowdfunding Regulation. It focuses on how investor protection can contribute to the objectives of crowdfunding and, in particular, how the provisions of the Crowdfunding Regulation serve this purpose. The chapter begins by discussing the investor-focused objectives of crowdfunding, and the role that technology can play in realising these objectives. It then considers the meaning of investor protection within the scope of the Crowdfunding Regulation, and identifies areas where the current regime might be extended in the future. The chapter also examines the categorisation of investors and the relevance thereof for the investor protection, before looking at the major provisions pertinent to investor protection, including the information to be provided to clients, default rate disclosure, the entry knowledge test and the simulation of ability to bear loss, the pre-contractual reflection period, and the key investment information sheet.

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