Article 22
Policies for credit risk assessment
1. Within their credit risk management framework, crowdfunding service providers shall set out appropriate credit risk policies and procedures for determining the criteria for credit risk assessment and monitoring.
2. Crowdfunding service providers shall have in place credit risk management policies and procedures specifying all of the following:
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(a) |
the process for approving crowdfunding projects to be proposed to investors; |
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(b) |
the process for assigning crowdfunding projects and project owners to risk categories in accordance with Article 19; |
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(c) |
the information and factors to be used to assess the creditworthiness of crowdfunding projects and project owners in accordance with Chapter II; |
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(d) |
the criteria for accepting and using credit risk mitigation measures; |
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(e) |
the conditions for the use of automated decision-making in the process for approving crowdfunding projects to be proposed to investors; |
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(f) |
the circumstances in which deviations from standard procedures are possible; |
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(g) |
the process for monitoring credit risk after the point of loan origination; |
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(h) |
the processes for dealing with project owners who are late in repaying their loans. |
3. The credit risk policies and procedures referred to in paragraph 1 shall:
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(a) |
be proportionate to the size and complexity of the crowdfunding projects offered on the crowdfunding platform; |
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(b) |
clearly identify the roles and/or functions responsible for carrying out the relevant tasks; |
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(c) |
be documented and kept updated. |
4. The credit risk policies referred to in paragraph 1 shall specify whether and how crowdfunding service providers include environmental, social and governance risks in crowdfunding projects’ credit risk assessment.