The categorization of investors' profiles as sophisticated or non-sophisticated arises from European Regulation 2020/1503 of the European Parliament and the Council on European providers of crowdfunding services, and at its genesis is the distinction between professional and non-professional clients established in the Directives 2014/65/EU.
With this distinction, the regulator aims to provide each of these investors with specific rules and protection. Thus, investors identified as sophisticated have greater investment freedom, and, in turn, non-sophisticated investors benefit from greater protection and can, for example, withdraw their financing offers within the reflection period.
The classification of the investor as sophisticated or non-sophisticated is mandatory. To this end, the user is invited to answer a short questionnaire at the end of their registration process. Investors will not be able to make investments on the Daskapital platform until they have completed this questionnaire.
Find out more about the European regulation on crowdfunding providers here.
If you need further clarification, please get in touch with us at support@daskapital.eu.
