News

EBA publishes final technical standards on crowdfunding service providers

Thursday 19 May 2022 11:49 CET | News

The European Banking Authority (EBA) today published its final draft Regulatory Technical Standards (RTS) specifying the information crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers. 

As investors using crowdfunding platforms may be exposed to the risk of having insufficient information, and/or incomplete understanding of the viability of a crowdfunding project or of the due diligence conducted by the crowdfunding service providers, it is important that adequate information is disclosed to investors on how credit scores are calculated, and crowdfunding offers are priced. 

These final draft RTS specify the information that crowdfunding service providers shall disclose with respect to the method used to calculate credit scores assigned to crowdfunding projects and prices of crowdfunding offers, and how to ensure that loan pricing is indeed fair and appropriate. The final draft RTS also specify the information to be considered when conducting the creditworthiness assessment of project owners and crowdfunding projects.

Finally, the final draft RTS propose what policies and procedures crowdfunding service providers are required to have in place to ensure that investors are adequately informed, and that credit risk assessment and loan valuation are conducted in a sound and consistent manner.


More: Link


Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: RTS, crowdfunding, regulation, credit scoring
Categories: Banking & Fintech
Companies: European Banking Authority (EBA)
Countries: Europe
This article is part of category

Banking & Fintech

European Banking Authority (EBA)

|
Discover all the Company news on European Banking Authority (EBA) and other articles related to European Banking Authority (EBA) in The Paypers News, Reports, and insights on the payments and fintech industry:





Industry Events