ERDEM-NEWSLETTER-2018-metin

228 NEWSLETTER 2018 France adopted a non-MiFID bespoke regime for investment- based crowdfunding using the exemptions foreseen by Article 3 of MiFID by defining crowdfunding services as investment advice. On the other hand, common trends are identifiable in most of the Member States where Directive 2003/71/EC and MiFID do not apply to crowdfunding, and national laws stipulate bespoke obliga- tions. Some of the Member States foresee new dedicated providers (as in Italy, France and Spain), while others do not (the UK, Austria, Germany) 16 . The new dedicated providers are restricted in terms of permissible products and activities, and they are not allowed to offer other investment services, nor to hold clients’ money or securities un- less they have been authorized as payment institutions. Furthermore, platforms are subject to the supervision of a financial markets author- ity. Most bespoke regimes allow traditional financial institutions to conduct crowdfunding operations (except for Spain); however, ex- tending to them the special crowdfunding requirements, in addition to the general ones. Bespoke regimes for investment-based crowdfunding are gener- ally concentrated on disclosure obligations on the risks, costs and fees, past performance, as well as special warnings regarding the issuer. Most of the bespoke regimes foresee information requirements and risk warnings by the platforms. Many Member States also stipulate limits to the sums investible by retail investors, while there are no limitations for professional investors, high-net-worth individuals or legal persons, and in some jurisdictions, persons receiving regulated advice. Similar to lending-based crowdfunding, such limits are generally referred to as investments per project and per year, per issuer and per platform, or only per issuer, with some limits, depending on income. Limits are often set also with regard to the amount that each issuer can obtain through the platform or on a given platform, or in general through crowdfunding platforms 17 . Investor tests or appropriateness assess- ments are required only in some countries, while in France, platforms, being investment advisors, need to perform a suitability assessment. 16 Ferrarini , p. 4. 17 Ferrarini , p. 4.