mamacrowd-logo
InvestRaiseFund&CrowdGuideNews
LoginSign up
ECSP and the new investment process for the unsophisticated

ECSP and the new investment process for the unsophisticated

07 November 2023

ECSP

CROWDFUNDING

MAMACROWD

TEST

SIMULAZIONE

The new European ECSP regulation introduces significant changes from the Italian regulations that have governed the sector for the past 10 years. After delving into how it changes the classification of investor types, the European regulation aims to provide greater transparency and protection towards the investor. To this end, a new investor profiling procedure is introduced through two tools: a knowledge test and a simulation of the ability to bear losses . Finally, the new post-investment right of reflection is also added.

What is the knowledge verification test for unsophisticated investors

The investment procedure remains simple and accessible to all. Investors can continue to browse Mamacrowd, browse investment opportunities, and choose and invest in the projects they find most interesting with greater awareness and transparency.

Before completing the investment transaction, as of November 10, every unsophisticated investor, on his or her first investment, will have to take a knowledge verification test (replacing the previous MIFID appropriateness check). The multiple-choice questions included in the verification cover experience, investment objectives, financial situation, as well as the investor's understanding of the risks associated with investing in general and equity investments on the platform. This innovation allows the investor to test whether and which crowdfunding services offered by the platform are appropriate for him or her. The test is to be repeated every 2 years.

Appropriate or inappropriate sophisticated investor

In real time, the platform returns the result: appropriate and inappropriate. In the first case, the investor has demonstrated sufficient understanding of the risks and operation of equity crowdfunding and can continue on the path by taking responsibility for investing without limitation on the amount.

If not appropriate, because he/she has not shown adequate understanding in financial matters, the user can continue with the investment but with limitations on the amount to be invested.

What is simulation of the ability to sustain losses

Whether appropriate or inappropriate, the unsophisticated investor is required to perform a second step of verification: loss simulation. The platform provides unsophisticated investors with a simulator that allows them to enter their net worth data and calculate their ability to sustain any losses from the investment, a capacity calculated as 10 percent of their net worth. It is possible to update the simulation every year.

The purpose here is to allow investors to quantify the maximum amount of losses that, based on their net worth, they would be able to face without exposing themselves to excessive financial consequences.

For each project, the investor's so-called investment threshold will be calculated, and that is the greater amount between €1K and 5 percent of his or her net worth. If the investor has the appropriate profile he/she can proceed with the investment, under his/her own responsibility without any limitation on the amount; while if he/she has the inappropriate profile he/she can only invest below the indicated threshold during the investment process.

Reflection vs withdrawal

There is also something new on the rights front: the right of reflection , which replaces the right of withdrawal. The investor will be able to withdraw from the investment within four calendar days of joining and no longer within seven days, as per the previous provision.

Transparency and simplicity in equity crowdfunding

As we have seen, the investment procedure for unsophisticated investors undergoes minor changes. Mamacrowd has worked to make these changes simple and accessible to the investor community.

Transparency and innovation have always been values that guide Mamacrowd's work, including in the choice of projects promoted from 2016 to the present.

Take a look at the startups, SMEs, and real estate projects we have led to success in recent years.

 

DISCOVER ALL THE PROJECTS

 
mamacrowd-logo

About us

Who we are

Press

Power User program

News

Carrers

Company informations

Real Estate Statistics

Crowdfunding services

Guide for the investor

Crowdfunding services

Investment costs

Risk warning

Alternative allowance regime

Tax benefits

Arbitrator for financial disputes

Dematerialized system

Trust company header service

Support

How to start

FAQ

Contacts

Terms & Conditions

Power User Terms & Conditions

Privacy Policy

Cookies Policy

Recovery Policy

Conflicts of Interest Policy

Handle Cookies

Warnings pursuant to art. 19 para. 2
the crowdfunding services provided by Mamacrowd do not fall under the deposit guarantee scheme established in accordance with Directive 2014/49/EU; the securities and instruments eligible for crowdfunding that can be acquired through this crowdfunding platform do not fall under the investor compensation scheme established in accordance with Directive 97/9/EC.

 

© 2025 Mamacrowd Srl a company of Azimut Group - VAT number IT07464370969 - Via Timavo 34, 20124 MI - SC € 95.417,54 fully paid up - Crowdfunding service provider authorised by resolution No. 22876 of 08/11/2023

  • Italiano

  • English

    Invest
      Invest in Startup/PMI and real estate projects
      Investor guide

    Raise
      Candidate a project

  • Sign Up
    Login
  • Italiano

  • English

Let us get to know you better

Mamacrowd and partners operate globally and can, upon acquiring your consent through the "Accept all", "Accept only necessary" or "Set preferences" commands, use cookies for statistical, advertising and also profiling purposes, own or third-party, to modulate the provision of the service in a personalized way and in line with your preferences.
In case of refusal we will only use the necessary cookies. For more information, read our Cookies Policy

Set preferences
Accept only necessary