European Crowdfunding Regulation (ECSP)

The European Crowdfunding Service Provider Regulation (ECSP) establishes a cohesive set of regulations dedicated to crowdfunding services, both for investments and loans, across the European Union. EvenFi, our crowdfunding platform, has long since complied with these regulations, being the first Italian company registered with ESMA's public registry through EvenFi's subsidiary in Spain. The ECSP, also known as the European Crowdfunding Regulation, encompasses a series of regulations issued by the European Union, aiming to provide a standardized regulatory framework for overseeing crowdfunding platforms.

This regulation seeks to harmonize the approach to crowdfunding across the EU, facilitating market access for new crowdfunding platforms and enhancing protection for investors. Like all crowdfunding platforms, EvenFi must adhere to ECSP rules starting from November 2023.

Platform Changes:

Each of these modifications has been carefully examined and approved by the CNMV (Spanish regulatory body) to ensure compliance with EU legislation.

• New questions in the investor suitability test: ✅ To ensure maximum security and awareness for our investors, EvenFi will integrate additional layers of protection into the registration processes and loan contracts. This includes introducing new questions in the suitability test, which every EvenFi investor must pass to invest through our platform. Following the implementation of the new regulation, this test will be valid for two years, after which it must be retaken to confirm investment expertise.

• Net Worth Verification and Loss Risk Calculation: ✅ Alongside the new version of our suitability test, net worth analysis and a loss risk simulation will be added during both the investor registration phase and within their EvenFi accounts. These tools, updated annually, aim to provide greater awareness of the potential implications of their investments, triggering automatic notifications when certain investment thresholds are reached.

• Introduction of the sophisticated investor category: ✅ In line with ECSP regulations, EvenFi will introduce the new "sophisticated investors" category. This will be reserved for investors who meet certain financial criteria, evaluated through a specific model.

• Integration of the Key Investment Information Sheet (KIIS) for new projects: ✅ To enhance transparency and efficiency, EvenFi will require companies seeking funding through our platform to complete a Key Investment Information Sheet (KIIS). This document must be made available for every project presented on any crowdfunding platform, enabling users to compare various projects.

We are committed to transparency and continually work to keep our community updated and safeguard investor interests.