What does ECSP mean and what limits apply?

What does ECSP mean and what limits apply?

ECSP stands for European Crowdfunding Service Provider. The legal basis is Regulation (EU) 2020/1503, which establishes a harmonised EU-wide framework for platforms providing crowdfunding services for businesses.

What does this mean for investors?

The ECSP regulatory framework includes, in particular, the following requirements and investor protection measures:
  1. identity verification and legally required checks as part of anti-money laundering procedures
  2. provision of a Key Investment Information Sheet (KIIS) for the respective offering
  3. additional assessments and safeguards for non-sophisticated investors
  4. transparent information about the risks associated with the investment
  5. a pre-contractual reflection period for non-sophisticated investors

What funding limit applies?

Under the ECSP Regulation, crowdfunding offers by a project owner may amount to a total of up to EUR 5 million over a period of twelve months.
Info
The regulatory preparation included in CONDA Capital Market's offering covers Germany and Austria. Additional EU countries may be included upon request. Additional regulatory requirements and official fees may apply.