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What does it mean to be a sophisticated investor?
What does it mean to be a sophisticated investor?
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Written by Estateguru
Updated over a week ago

Due to regulatory requirements, Estateguru is obliged to differentiate between sophisticated and non-sophisticated investors. Based on the Crowdfunding Regulation, an investor with enough prior experience with investing (both with crowdfunding services as well as other investment services) can be deemed as a sophisticated investor, or someone who has the knowledge and experience to assess the risks associated with investing. There are specific requirements Estateguru needs to take into account when classifying clients as sophisticated or non-sophisticated clients.

Sophisticated investors may occasionally be granted access to special projects or longer access to financing projects (some limitations may be in place for non-sophisticated investors in relation to their right to a reflection period). Sophisticated investors do not have access to a reflection period, and they are also not subject to certain other periodic information disclosure requirements (such as the appropriateness test and loss bearing ability calculations).

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