Updated 18/09/2024
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Article 5 - Simulation of the ability to bear losses using an online calculation tool

Article 5

Simulation of the ability to bear losses using an online calculation tool

1.   Crowdfunding service providers shall make available on their website an online calculation tool enabling prospective non-sophisticated investors to simulate their ability to bear losses.

2.   The online tool referred to in paragraph 1 shall compute the ability to bear losses of prospective non-sophisticated investors, based on the information listed in Article 21(5), points (a), (b) and (c), of Regulation (EU) 2020/1503, as provided by the non-sophisticated investor.

3.   The online tool referred to in paragraph 1 shall be easy to use and shall not require prospective non-sophisticated investors to perform any tasks other than providing the information set out in Article 21(5), points (a), (b) and (c), of Regulation (EU) 2020/1503.

4.   The online tool referred to in paragraph 1 shall display the result of the simulation in a manner which is clear and understandable for prospective non-sophisticated investors.

5.   The online tool referred to in paragraph 1 shall be set up in a way that does not enable crowdfunding service providers to access or record the information inputted by prospective investors pursuant to paragraph 3 or to amend or interfere with the result of the simulation referred to in paragraph 4. However, the online tool may embed a feature enabling prospective non-sophisticated investors to transmit the result of the simulation to the crowdfunding service provider.