What are the main aspects of the law that affect investors?
According to the Law on the Promotion of Business Financing and the provisions of Article 81, two types of Investors are distinguished in Participatory Financing Platforms (PFP): Accredited investors and non-accredited investors.
Article 81 Types of investors.
1. Investors may be accredited or uncredited.
2. In the case of projects referred to in Article 50.1.b) and c) of this Law, they will be considered as an accredited investor:
a) The natural and legal persons referred to in letters a), b) and d) of Article 78 bis.3 of Law 24 / 1988, of July 28, of the Stock Market.
b) Entrepreneurs who individually meet at least two of the following conditions:
1.º That the total of the asset items is equal to or greater than 1 million euros,
2.º that the amount of its annual turnover is equal to or greater than 2 million euros,
3.º that its own resources are equal to or greater than 300.000 euros.
c) Individuals who meet the following conditions:
1.º Credit annual income greater than 50.000 euros or financial assets greater than 100.000 euros, and
2.º request to be considered as previously accredited investors, and expressly waive its treatment as an uncredited client.
The admission of the application and resignation must be carried out in accordance with the provisions of Article 84 and will be conditioned on the participatory financing platform making the appropriate evaluation of the client's experience and knowledge, and ensuring that it can make its own investment decisions and understand its risks.
d) Small and medium enterprises and legal persons not mentioned in the previous sections when they comply with the provisions of number 2.º of the previous section.
3. In addition to the aforementioned persons, the natural or legal persons accrediting the contracting of the financial advisory service on the financing instruments of the platform by an authorized investment services company will also be considered an accredited investor.
4. Any investor who does not comply with the provisions of sections 2 and 3 of this article shall be considered as not accredited.
5. Investors accredited according to letters c) and d) of section 2 of this article that do not provide financing to a project of the participatory financing platform within twelve months, will lose the status of accredited, although they may recover it when they comply with the requirements established in the aforementioned letters. Likewise, they will lose the consideration of creditors when they request it in writing.