(a)

the data used to conduct the assessments of creditworthiness referred to in Chapter II of this Regulation are consistent, complete and appropriate;

(b)

the measurement techniques are appropriate to the complexity and level of the risks underlying the single crowdfunding projects and/or the portfolios, are based on reliable data, and are subject to periodic validation; and

(c)

the procedures relating to data management are robust well documented, reliable and regularly updated.

(a)

the distribution of loans in accordance with their maturity within the same portfolio;

(b)

the interest rate for each loan of the same portfolio;

(c)

the share of loans in a single portfolio granted to the same project owner or to a group of connected project owners;

(d)

the share of loans in a single portfolio granted to project owners established or operating in the same jurisdiction or geographical area;

(e)

the share of loans in a single portfolio granted to project owners operating in the same business sector;

(f)

the share of loans assigned to the same risk category;

(g)

the method used to evaluate the correlation of risks within the same portfolio.

(a)

two or more natural or legal persons who constitute a single risk because one of them, directly or indirectly, has control over the other or others;

(b)

two or more natural or legal persons are to be regarded as constituting a single risk because they are so interconnected that, if one of them were to experience financial problems, the other or all of the others would also be likely to encounter funding or repayment difficulties.

(a)

the source of the data used as input for the models;

(b)

the framework employed to ensure the quality of the input data;

(c)

the existence of appropriate governance arrangements for the design and use of such models;

(d)

the framework to ensure that the quality of the model output is regularly assessed and validated, and where appropriate, reviewed.

(a)

how the use of automated models is appropriate to the size, nature and complexity of the types of crowdfunding project selected for the investor’s portfolio;

(b)

the conditions for the application of automated decision-making in the credit-approval and monitoring processes, including identifying loans, segments and limits for which automated decision-making is allowed.

(a)

that the denominator consists of the sum of the notional amount of every loan included in the portfolio;

(b)

that the numerator consists of the sum of the products of:

(a)

in the case of a fixed interest rate, the annual interest rate as laid down in the loan contract;

(b)

in the case of a variable interest rate, the interest rate in force at the time of the publication of the weighted average annual interest rate, taking into account any upper limit as laid down in the loan contract;

(c)

in cases in which the loan is split into tranches earning different interest rates, the weighted average of the interest rates as laid down in the loan contract.

(a)

the distribution of loans according to risk category in absolute numbers shall refer to the sum of the notional amount of every loan in the same risk category;

(b)

the distribution of loans according to risk category as a percentage shall refer to the ratio between:

(a)

the amount of the loan, including the most recent outstanding balance;

(b)

the currency in which the loan is granted;

(c)

the entity responsible for the servicing of the loan, including its legal name, registration number and place of registration, registered office and contact details, and its servicing policy;

(d)

the identity of the project owner, including indicating its legal name, the country of incorporation and registration number, the address of its registered office and its corporate website;

(e)

the ownership structure of the project owner;

(f)

the purpose of the loan, by adding a brief description of the crowdfunding project;

(g)

the interest rate or any other compensation laid down in the loan, for each year until maturity, and where the interest rate or any other compensation is not directly available, the calculation method;

(h)

the maturity date of the loan;

(i)

the relevant risk category to which the loan is assigned in accordance with the risk management framework referred to in Article 4(4), point (f) of Regulation (EU) 2020/1503;

(j)

the schedule for the repayment of the principal and for the payment of interest on the loan;

(k)

the compliance of the project owner with the instalment payment schedule of the loan by indicating any past due payment or any default as referred to in Article 1(1) of Commission Delegated Regulation (EU) 2022/2115 (4);

(l)

the percentage of the amount of the crowdfunding project being financed by the investor through the loan, expressed as the ratio between:

(a)

the type of offer and the instrument used for financing the project;

(b)

the completion date (past or expected);

(c)

the notional amount that the project owner is borrowing;

(d)

other relevant information, including all other financial obligations and contingent liabilities.

(a)

‘funded credit protection’, which means a technique of risk mitigation where the reduction of the credit risk associated with a loan derives from the right of the investor, in the event of the default of the loan or on the occurrence of other specified credit events relating to the project or project owner, to liquidate or obtain transfer or appropriation of, or to retain, certain assets or amounts, or to reduce the amount of the loan;

(b)

‘unfunded credit protection’, which means a technique of risk mitigation where the reduction of the credit risk associated with a loan derives from the obligation of a third party to pay an amount in the event of the default of the loan or on the occurrence of other specified credit events relating to the project or project owner.

(a)

the type of asset(s);

(b)

the most recent valuation of such asset(s) and the amount(s) that can be liquidated, transferred, retained or appropriated;

(c)

the valuation method;

(d)

the ratio between the amount referred to in for in point (b) and the total notional amount of the loan, expressed as a percentage.

(a)

the name, address and legal nature of the third party acting as protection provider or guarantor;

(b)

the ratio between:

(a)

that the eligibility and the valuation of any risk mitigation measure are assessed in accordance with adequate policies and procedures within the risk management framework, as referred to in Article 4(4), point (f) of Regulation (EU) 2020/1503 and as specified in accordance with Article 19(7), point (d) of that Regulation;

(b)

that the valuation of any risk mitigation measure takes into account all the disposition costs arising from obtaining and selling collateral.

(a)

‘default’ means ‘default’ as defined in Article 1(1) of Delegated Regulation (EU) 2022/2115;

(b)

a ‘credit agreement’ means an agreement whereby an investor grants to a project owner credit in the form of a loan for a specific crowdfunding project.

(a)

at the point of loan origination;

(b)

immediately after the occurrence of a default event;

(c)

until the maturity date of the credit agreement included in the portfolio.

(a)

past due days;

(b)

amount of arrears.

(a)

a sworn statement by the project owner;

(b)

information available in credit registers;

(c)

publicly available information, including from debt collection companies or credit rating agencies;

(d)

other type of information.

(a)

that the information provided by project owners in accordance with paragraph 5 is accurate, reliable and up to date;

(b)

that the disclosure to investors of the information referred to in paragraph 5 is in accordance with Regulation (EU) 2016/679 of the European Parliament and of the Council (6).

(a)

the interest rate or any other compensation laid down in the loan;

(b)

the yield to maturity;

(c)

the application of any fees as referred to in in Article 6(4), point (g) of Regulation (EU) 2020/1503;

(d)

the expected default rates, determined in accordance with Article 4(1) of Delegated Regulation (EU) 2022/2115;

(e)

any other costs paid by the project owner or the investor or the crowdfunding service provider in relation to the loan.

(a)

numerator obtained by the sum of the products of:

(b)

denominator obtained by the sum of the notional amount of every loan of which the portfolio is composed.

(a)

have full knowledge of the legal, organisational and operational structure of the contingency fund and ensure that that structure is in line with its approved purposes;

(b)

be fully aware of the structure, responsibilities and the division of tasks within the contingency fund.

(a)

the purpose of the contingency fund;

(b)

the legal and operational structure of the contingency fund, including whether it is operated by the crowdfunding service provider itself or by a third party;

(c)

the duration of the contingency fund, including cases in which the fund has an unlimited term.

(a)

the composition of the management body of the contingency fund;

(b)

the responsibilities and duties of the management body of the contingency fund;

(c)

a description of the competences and skills of each member of the management body of the contingency fund;

(d)

the frequency of the meetings of the management body of the contingency fund;

(e)

the reporting requirements between the management body of the contingency fund and the management body of the crowdfunding service provider;

(f)

the responsibilities for the documentation, management and control of the outsourcing arrangements;

(g)

the identification of one or more senior staff members who are directly accountable to the management body of the crowdfunding service provider and responsible for managing and overseeing the risks of outsourcing arrangements, including the respective documentation.

(a)

any initial contribution made by the crowdfunding service provider into the contingency fund;

(b)

the type of fees that are collected for accruing the contingency fund;

(c)

the criteria the contingency fund management takes into account when deciding the type of fees to be levied;

(d)

the criteria the contingency fund management takes into account when deciding the amount of fees to be levied for each loan;

(e)

the decision-making process to determine the amount and nature of fees to be levied;

(f)

the investment strategy adopted by the contingency fund for investing the funds under management;

(g)

the legal ownership of the funds;

(h)

how the funds will be dissolved in the event of the maturity of the contingency fund;

(i)

how the funds are segregated from other assets owned by the crowdfunding service provider;

(j)

how the money paid into the contingency fund will be treated in the event of the insolvency of the contingency fund operator.