Under the European Crowdfunding Service Providers (ECSP) regulation, non-sophisticated investors must periodically complete two key investor protection assessments: the Entry Knowledge Test and the Simulation of the Ability to Bear Loss. These tests are designed to ensure you understand the risks involved in crowdfunding and have the financial capacity to absorb potential losses. If these tests become outdated on your profile, your account will be temporarily restricted. You will not be able to make any new investments, and crucially, your Auto-Invest feature will be paused, leaving your funds sitting idle.
Investors who have never taken the tests or their previous test result has expired, after login are shown a notification linking to the tests page. In addition, it is accessible via My profile page, tab Investor status.
Entry knowledge test
The purpose of the test is to evaluate your knowledge regarding investing and financial products and assess whether investing in crowdfunding loans is appropriate for you. The test consists of 9 questions and takes up to 5 minutes to complete. Test results are valid for 2 years.After completing the Entry knowledge test, the investor is prompted to continue with the Simulation of ability to bear loss test.
Simulation of ability to bear loss
Simulation of ability to bear the loss will guide you to calculate your Net worth. You will be able to use our calculator or choose to enter the Net worth value yourself. The end result will provide you with the recommended investment amount for crowdfunding platforms based on your net worth. Simulation of ability to bear loss results are valid for 1 year.Using test results
Both tests can be completed several times and you can retake them anytime if you go to My profile and select the Investor status tab. The test result will allow us to determine the investment size per one project appropriate for you. Investors are shown warning messages in case an investment in one project exceeds the recommended limits.For active investors email reminders are sent before any of the test expires. In addition, a notification is shown on the platform to retake the tests.