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1503 ⬅️ | ➡️ Article 5 – Simulation of the ability to bear losses using an online calculation tool

Article 4 - Risk warning pursuant to Article 21(4) of Regulation (EU) 2020/1503

1.

When issuing the risk warning referred to in 2020, crowdfunding service providers shall not encourage prospective non-sophisticated investors to proceed with the investment.

2.

The risk warning referred to in paragraph 1 shall contain the following text: ‘

An investment in a crowdfunding project includes the risk of losing the entirety of the money invested.

3.

The risk warning referred to in paragraph 1 shall be displayed to prospective non-sophisticated investors in an easily readable and prominent way on the crowdfunding service providers’ website.

4.

The window displaying the risk warning referred to in paragraph 1 shall be prominent and remain visible on the crowdfunding service providers’ website until the prospective non-sophisticated investors have acknowledged that they have received and understood that warning.