New Crowdfunding Regulations and What It Means for Eyeventures and Investors

Summary:

Investor Experience Test:

• All users must complete this test for further investment.
• Inexperienced investors are given a four-day cooling-off period; experienced investors are not.

Bulletin Board replaces the Marketplace:

• The regulations require negotiations to take place outside the platform. The transaction is done on the platform through a Direct Sale.

Key Investment Information Sheet (KIIS)

• · Replacement of the AFM information document
• · Requirement for an ECO/funding round to go live that Eyevestor has validated the KIIS

How did Eyevestor implement the Crowdfunding Regulation requirements? There are two main changes:

Dear entrepreneur and eyeventure admin user,

Over the past few months, we have been busy implementing all the platform features required by the European Crowdfunding Regulation (ECSP).

First, an introduction to the ECSP:

The ECSP is designed to regulate and harmonize crowdfunding services within the European Union and is certainly also intended to stimulate crowdfunding. At the same time, it is also there to protect investors and especially private investors.

Sharefunding and crowdfunding platforms must provide investors with risk information and communicate clearly about it. Transparency about the projects and costs are also important themes.

Both Eyevestor and the eyeventures are responsible under the regulations. That is why we have made adjustments to the platform and updated the general and terms of use .

It is important that both legal requirements and ethical standards are met.

Therefore, it is essential that Eyevestor and investors have always access to all necessary communications. From now on, it is therefore mandatory to share all documents and messages that have been communicated and addressed to our investors in the community of your eyeventure. We will also monitor this during the (periodic) Eyecon Governance Checks, Issuance Checks and before ECO goes live.

The four main changes:

1. Investor experience test

Every user will have to complete an investor experience test before investing. The result of the test may be that the user is an 'experienced' or an 'inexperienced' investor.

Inexperienced investors: Investors who have been marked as inexperienced after passing the test will be given a four-day cooling-off period. This means that their investment will be held escrow (in a third-party account) for four calendar days. In those four days, they can cancel the paid transaction. The status of the transaction will be marked as reserved as long as the investment is in escrow.

The transactional risk warnings, for all users, in the platform remain largely the same as before, added are conflicts of interest.

2. Source of Origin:

If an investor receives a transaction greater than or equal to €10,000, the investor will systematically access a source of origin form during the transaction.

In the event that a source of origin investigation is initiated by a notary or regulated institution, the project owner can submit the source of origin. It is up to the project owner to ensure that the investor provides it when required.

3. KIIS / EBI - Key Investment Information Sheet / Key Investor Information Sheet

Previously, if you wanted to start a funding round, you had to file an Information Document with the AFM. This has now been replaced by the ECI/KIIS form.

For convenience, we have integrated the form into the platform when setting up the ECO. Please note that the ECO cannot go live until the ECI/KIIS has been approved by Eyevestor. We use 4 working days for this.

Once the KIIS has been published, only Eyevestor can make changes. Eyevestor needs to validate this for completeness, readability and feasibility.

The first KIIS is included in your FUND subscription. Adjustments or subsequent will be invoiced in advance. The costs are €350 and can now be found on the pricing page.

We advise the eyeventure with an ongoing ECO to complete and upload the ECI/KIIS form, despite the fact that it does not seem mandatory at the moment. The document serves as protection for the investor, and it helps them make an informed choice.

4. Bulletin board instead of the Marketplace

On Sunday, November 5th, the marketplace will be replaced by the bulletin board. This is also one of the consequences of the new regulations.

What has changed?

Only buying and selling intentions can be displayed on the bulletin board.

One of the requirements of the ESCP licence is that the negotiation must take place outside the platform. To then handle the sale on the platform with a Direct Sale transaction.

How does that work?

Buyers and sellers can indicate their intent to the other buyer/seller. Eyevestor facilitates the exchange of contact details (email address), so that the negotiation can take place outside the platform. The final transaction will take place on the platform through a Direct Sale, initiated by the seller who will need the buyer's eyecon account number to initiate the transaction. The buyer accepts and pays and then the transaction will be complete.

What else is changing?

Activating the Bulletin Board: When activating the Bulletin Board (within the eyeventure), the Direct Sale will have to be enabled for all Member Types and the offer obligation will be lifted. This will then apply to all Member types.

Mid-price: The mid-price and bandwidth functions will also be dropped. It can still be entered as a suggested retail price by the eyeventure. According to the regulations, the project owner is not allowed to play a role in the pricing.

Pending Marketplace Orders: Pending Marketplace orders will be transferred as soon as the marketplace is replaced by the bulletin board. With the bulletin board, it is easier to trade in price and number of eyecons between buyer and seller, but outside the platform.

Min/Max positions: Min/max positions still apply per Member type. Members should therefore take this into account. Otherwise, the Direct Sale will not be accepted by the platform.

Manuals have been developed and can be found in the eyeventure document center.

Together we can achieve more! Good business!

Sincerely,

Daan Donkers, on behalf of Team Eyevestor