ECSP Regulation and the Crowdfunding Act – table of contents

ACT ON CROWDFUNDING FOR BUSINESS VENTURES

1 – General provisions

(a) material scope

(b) definitions

2 – Business secret

(a) material scope (information subject to business secret)

(b) business secret obligations of the provider

(c) entities obliged to maintain business secret

(d) list of authorities at whose request the information subject to business secret is disclosed

(e) exclusion of the business secret obligation

(f) liability for damages for breach of business secret

3 – Obligations concerning archiving and retention of records by the provider and the right of control of the Polish Financial Supervision Authority

4 – Information obligations of crowdfunding service providers and supervision by the Polish Financial Supervision Authority

(a) obligation to inform the Polish Financial Supervision Authority about the conducted activity, financial situation and significant events

(b) obligation to inform the Polish Financial Supervision Authority about the intention to commence the provision of individual loan portfolio management services

(c) obligation to provide the Polish Financial Supervision Authority with a key investment information sheet

(d) right of the Polish Financial Supervision Authority to determine a language other than Polish for key investment information and marketing messages

(e) terms and conditions for providing crowdfunding services to an inexperienced investor

(f) terms and conditions for the provision of the key investment information sheet by the owner of a loan draft

(g) request of the Polish Financial Supervision Authority to provide documentation and explanations regarding compliance with the Act and the ECSP Regulation

(h) right of the Polish Financial Supervision Authority to engage an audit firm to audit the financial statements of the provider

(i) termination of authorization to operate as a crowdfunding service provider

(j) right of the Polish Financial Supervision Authority to cease or prohibit the commencement of crowdfunding services or to interrupt their progress

(k) right of the Polish Financial Supervision Authority to suspend or prohibit the transmission of marketing communications

(l) right of the Polish Financial Supervision Authority to suspend or prohibit the provision of crowdfunding services

(m) right of the Polish Financial Supervision Authority to make public information on the type and nature of violations by a provider or insourcer of the ECSP Regulation

(n) public disclosure by the Polish Financial Supervision Authority of material information that may adversely affect the provision of crowdfunding services by the provider

5 – Charges to cover the costs of supervision

(a) fees for the grant or extension of the permit to operate as a crowdfunding service provider

(b) annual fee for the supervision of crowdfunding service providers

6 – Administrative sanctions for violations and remedies

(a) right of the Polish Financial Supervision Authority to issue decisions ordering the provider to cease actions resulting in violations and not to undertake such actions in the future as well as to impose financial penalties on the provider

(b) right of the Polish Financial Supervision Authority to impose other administrative sanctions, such as ordering the removal of a member of the Board of Directors of the provider and imposing a ban on a member of the Board of Directors of the providers, or management functions, imposing a fine on a member of the Board of Directors of the provider

7 – Civil liability in connection with the key investment information sheet

(a) responsibility of the draft owner for the accuracy, reliability and completeness of all information contained in the key investment information sheet

(b) responsibility of the crowdfunding service provider for the accuracy, reliability and completeness of all information contained in the key investment information sheet at the platform level

(c) responsibility of the crowdfunding service provider for the accuracy of the translation of the key investment information sheet or the key investment information sheet at the platform level

(d) compensation obligations of those in charge for the content or translation of the key investment information sheet

8 – Criminal provisions

(a) criminal penalty for engaging in the business related to the provision of crowdfunding services

(b) criminal penalty for engaging in the business of operating a publicly accessible on-line information system that matches investors or lenders with draft owners seeking to finance business ventures with funds from their issuance of marketable securities or loans other than as set forth in the ECSP Regulation

(c) criminal penalty for misrepresenting or withholding true data in the key investment information sheet or platform-level key investment information sheet that materially affects the content of the information

(d) criminal penalty for making a crowdfunding offering related to loans granted by investors without making the key investment information sheet available to the public

(e) criminal penalty for the disclosure or use of the information subject to business secret by an entity required to keep business secret

(f) criminal penalty for the offense of violating the obligation to archive and preserve documents related to the provision of crowdfunding services