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🔗 Back to Summary. 🇫🇷 French Version: 2022R2118_FR.3. Back to Summary of LVL1. Open the PDF. Direct link to EUR-LEX.
Article 2 – Format of the information to be disclosed ⬅️ | ➡️ Article 4 – Credit risk at the investor’s portfolio level
Références LVL1 <=> LVL2
Level 1 reference(s): 2020R1503_EN.6 > 2#a
Article 3 - Credit risk of individual crowdfunding projects
The description provided to investors of the method to assess the credit risk of individual crowdfunding projects within a portfolio as referred to in Article 6(2), point (a) of Regulation (EU) 2020/1503, shall contain all of the following elements:
(a)
the criteria and the key financial indicators used to establish the feasibility and sustainability of the business plans of the individual crowdfunding projects;
(b)
an analysis of the expected cash flows of the crowdfunding projects and an assessment of how certain those expected cash flows are over different time horizons;
(c)
an analysis of the characteristics, including the degree of competition, of the business sector in which the project owners operate;
(d)
an assessment of the project owners’ knowledge, experience, reputation and capacity to manage business activities in the project’s specific sector;
(e)
the procedures regarding the acceptance and recognition of collateral or guarantee and credit risk mitigation measures, where relevant;
(f)
the type of the repayment schedule for the loan and the frequency of instalments;
(g)
the procedures to assign each loan associated with a project to an appropriate risk category as defined by the risk management framework;
(h)
the source and type of data used for the purposes of points (a) to (g).