Experienced Investor

What are they?

The Regulation (EU) 2020/1503 establishes two ways to be considered an experienced investor:

  1. Professional clients according to MiFID II: Those already considered professional clients under Annex II, Section I, points 1 to 4 of Directive 2014/65/EU (MiFID II), such as financial institutions, large companies, or governments.
  2. Evaluation by the crowdfunding service provider: Individuals or legal entities who, even though not professional clients under MiFID II, may be considered experienced investors if they meet certain financial and experience criteria and request such treatment from the crowdfunding service provider.

For legal entities, at least one of the following criteria must be met:

  • Own funds of at least €100,000.

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  • Net turnover of at least €2,000,000.​
  • A balance sheet of at least €1,000,000.
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For individuals, at least two of the following criteria must be met:

  • Personal gross income of at least €60,000 per fiscal year, or a financial instrument portfolio exceeding €100,000.
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  • Have worked in the financial sector for at least one year in a role requiring knowledge of the expected operations or services, or have held an executive position for at least 12 months in a legal entity meeting the criteria for legal entities.
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  • Have conducted significant volume operations in capital markets, averaging 10 per quarter over the last four quarters.
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The request to be treated as an experienced investor must include a certificate specifying the criteria met, a statement acknowledging the consequences of losing the protection associated with the non-experienced investor category, and a responsibility statement regarding the accuracy of the information provided.

Key aspects to consider

  • Lower regulatory protection: Experienced investors are not subject to certain protective measures applied to non-experienced investors, such as knowledge tests or specific risk warnings.
  • Access to broader investment opportunities: Being considered capable of assuming greater risks, they can access a wider range of crowdfunding projects without the restrictions imposed on non-experienced investors.
  • Validity of the qualification: The status of an experienced investor is valid for two years, after which it must be renewed through a new evaluation.

Being recognized as an experienced investor allows access to a broader range of investment opportunities in crowdfunding platforms, with fewer restrictions and greater flexibility. However, this category entails lower regulatory protection, which means the investor must have a solid understanding of the associated risks and the financial capacity to absorb potential losses. Therefore, it is essential for investors to carefully assess their experience, knowledge, and financial situation before requesting this qualification.

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