On 22 January 2024, there was published in the Official Journal of the EU, Commission Delegated Regulation (EU) 2024/358 of 29 September 2023 supplementing the EU Crowdfunding Regulation with regard to regulatory technical standards (RTS) specifying requirements on credit scoring of crowdfunding projects, pricing of crowdfunding offers, and risk management policies and procedures.

The RTS:

  • Specify the information that crowdfunding service providers must disclose to investors about the methods used to calculate the credit score for crowdfunding projects and to suggest the price for crowdfunding offers.
  • Specify the factors that crowdfunding service providers must consider ensuring fair and appropriate pricing of the loans they facilitate on their platforms.
  • Set out the information and factors that crowdfunding service providers must consider when:
    • assessing the credit risk for a crowdfunding project or project owner, to ensure it is based on sufficient information, in accordance with Article 4(4)(a) and 4(4)(b) of the Regulation;
    • conducting a loan valuation at different points in the life cycle of the loan, as specified in Article 4(4)(e) of the Regulation.
  • Require that the methods for assessing creditworthiness be proportionate to the size, type and maturity of the loan and to the characteristics of the project owner.
  • Specify the governance arrangements that crowdfunding service providers must have in place to support information disclosure to investors, credit risk assessment and loan valuation and the risk management framework referred to in Article 4(4)(f).
  • Require that such internal governance arrangements and processes be proportionate to the size and complexity of the crowdfunding service provider.

The Commission Delegated Regulation enters into force on the twentieth day following its publication in the Official Journal of the European Union (11 February 2024).