ESMA: he has published several Question and Answer in the field European crowdfunding service providers for business (ECSP regulation), or, in particular:
- ESMA Q&A n. 2199: whole CSP: (Crowdfunding: Service Provider – service providers crowdfunding:) that facilitate provision of loans they must have a management framework risk This framework should be based on? credit risk categories offered by CSP.
Because art. Article 20(1)(b) of the ECSPR requires all credit-facilitating CSPs to publish an annual performance statement stating: the default interest rate of all expected and actual loans supported by the CSP by risk category and taking into account the risk categories defined in the risk management framework, ESMA considers that the risk management framework of (all) loan-based CSPs should: assess the risks of loans brokered on their platform by classifying them into risk categories corresponding to the risks/probability of such loans. This will allow CSPs to correctly assess the risks of the loans they offer on their platform in accordance with art. Article 4(2) of the ECSPR and, at the same time, to comply with art. Article 20(1)(b) of the same Regulation and provide accurate statements about the actual and expected default of such loans, referring to the same risk categories used in their risk management.
- ESMA Q&A n. 2200How to deal with the possible excessive risk exactly insurance policy that CSPs sign to respect the economic protection defined by art. 11 of the ECSPR.
ESMA considers that, where the insurance policy used by a CSP to meet economic guarantees leaves some risks associated with the provision of crowdfunding services, the CSP should: integrate coverage of these risks using proprietary funds, as required by art. 11, paragraph 2, letter c) of the ECSPR.
- ESMA Q&A n. 2201: What isseniority between own funds and insurance policies In case of losses for the CSP, whose economic guarantees are the combination of own funds and the insurance policy?
The ECSPR does not provide any specific guidance on how losses incurred may affect the CSP’s economic protection (for example, whether such losses should be deducted first from own funds, then from the insurance policy, or otherwise). ESMA notes that this effect will often depend on the terms of the insurance policy signed by the CSP; therefore, a CSP whose economic protection consists of a combination of own funds and an insurance policy should pay special attention; the terms and conditions of your insurance policy to ensure that In case of losses, the part provided for in the insurance contract may be available without undue delay;.
ESMA reminds that CSPs must take action in case of losses conforming to the art of proceeding. 11:00Paragraph 1 of the ECSPR that CSPs must always have prudence guarantees equal to the amount that is at least the highest of:
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- 25,000 euros
- a quarter of the previous year’s fixed total costs revised annually, which must include three months of loan servicing costs when the crowdfunding service provider also facilitates the loans.