This note has been published as a follow up to our previous information note CROWDFUNDING IN SPAIN. On this occasion, we are going to concentrate on who may invest and what limits may be imposed upon the investor.
In the first place, it must be noted that the law on collective funding separates investors into two types: (i) accredited; and (ii) non-accredited.
ACCREDITED INVESTORS
In summary, they are those investors who, due to their nature, already possess prior knowledge of the investment and of the risk bearing aspect. The law establishes clear thresholds, which define accredited investors as large companies, states, financial institutions, etc.
NON-ACCREDITED INVESTORS
Non-accredited investors are those who do not fulfil the conditions for being an accredited investor. Likewise, any investor may apply to be considered as an accredited investor. In such cases, the investment platform must evaluate the investor and determine whether it complies with the requisites to be considered an accredited investor.
CONSEQUENCES
The fundamental difference between being considered an accredited investor and a non-accredited investor is the protection that should be offered by the investment platform. An accredited investor does not have a limit on the investment per project, and furthermore, it is assumed that he has a decision making capacity and sound knowledge of the market. On the other hand, a non-accredited investor has a 3,000€ limit on investment per project. Both types of investors, accredited and non-accredited, shall have a total annual limit on this type of investment of €10,000.
This last limit seems to be a measure to avoid speculation in the collective funding market
Vilá Abogados
For more information, please contact:
6th August 2015
