# Regulation (EU) 2020/1503 of the European Parliament and of the Council of 7 October 2020 on European crowdfunding service providers for business, and amending Regulation (EU) 2017/1129 and Directive (EU) 2019/1937 (Text with EEA relevance), Division I: Identification criteria

Extent: E+W+S+N.I.

A sophisticated investor is an investor who possesses the awareness of the risks associated with investing in capital markets and adequate resources to undertake those risks without exposing itself to excessive financial consequences. Sophisticated investors may be categorised as such if they meet the identification criteria set out in this Section, and if the procedure set out in Section II is followed.
The following natural and legal persons shall be regarded as sophisticated investors in all services offered by crowdfunding service providers in accordance with this Regulation:
(1) Legal persons meeting at least one of the following criteria:
(a) own funds of at least EUR 100 000;
(b) net turnover of at least EUR 2 000 000;
(c) balance sheet of at least EUR 1 000 000.
(2) Natural persons meeting at least two of the following criteria:
(a) personal gross income of at least EUR 60 000 per fiscal year, or a financial instrument portfolio, defined as including cash deposits and financial assets, that exceeds EUR 100 000;
(b) the investor works or has worked in the financial sector for at least one year in a professional position which requires knowledge of the transactions or services envisaged, or the investor has held an executive position for at least 12 months in a legal person as referred to in point (1);
(c) the investor has carried out transactions of a significant size on the capital markets at an average frequency of 10 per quarter, over the previous four quarters.

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Source: https://www.legislation.gov.uk/eur/2020/1503/annex/II/division/I (the official version)
Page: https://openlegislation.uk/eu-regulation-2020-1503/annex-II/division-I
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.