Regulatory-fine provisions relating to Regulation (EU) 2020/1503

(1) It is a regulatory offence for any person who, intentionally or recklessly, transmits a particular incorrectly, contrary to Article 18(1) of 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 (OJ L 347, 20.10.2020, p. 1).
(2) It is a regulatory offence for any person who breaches Regulation (EU) 2020/1503 by, intentionally or negligently,
1. granting or receiving a remuneration, rebate or non-monetary benefit, contrary to Article 3(3),
2. failing to oversee the implementation of an arrangement, a procedure, a system or a control referred to there, contrary to Article 4(1) or (2), first subparagraph,
3. failing to ensure that it has a system or a control referred to there, contrary to Article 4(2), second subparagraph,
4. failing to carry out a review, or failing to carry it out correctly, completely or in time, contrary to Article 4(3),
5. failing to carry out an assessment referred to there, or failing to carry it out correctly, completely or in time, contrary to Article 4(4)(a),
6. failing to provide for a check referred to there, contrary to Article 5(1) in conjunction with paragraph 2, letter b,
7. failing to keep a record, or failing to keep it correctly or for at least three years, contrary to Article 6(3),
8. failing to make information referred to there available, or failing to make it available correctly, completely, or on the investor's request, contrary to Article 6(4),
9. failing to make information referred to there available, or failing to make it available correctly, completely or in time, contrary to Article 6(6),
10. failing to ensure that a client may submit a complaint free of charge, contrary to Article 7(2),
11. failing to keep a record, or failing to keep it correctly or completely, contrary to Article 7(3),
12. holding a participation, contrary to Article 8(1),
13. permitting a person referred to there as a project owner, contrary to Article 8(2), first subparagraph,
14. failing to disclose a fact referred to there, or failing to disclose it correctly, completely, in the prescribed manner or without delay after a person's admission as an investor, or failing to ensure that a person does not receive preferential treatment, contrary to Article 8(2), second subparagraph,
15. failing to give a notice, or failing to give it correctly, completely or in time, or failing to submit information, or failing to submit it correctly, completely or in time, contrary to Article 15(3),
16. failing to transmit a list referred to there, or failing to transmit it correctly, completely or in time, contrary to Article 16(1),
17. as a crowdfunding service provider, failing to make a communication, or failing to make it correctly, completely or in time, contrary to Article 19(4),
18. failing to disclose a default rate, or failing to disclose it correctly, completely, in the prescribed manner or in time, contrary to Article 20(1)(a) in conjunction with paragraph 2,
19. failing to publish a statement, or failing to publish it correctly, completely or in time, contrary to Article 20(1)(b),
20. failing to carry out an assessment referred to there, or failing to carry it out correctly, completely or in time, contrary to Article 21(1) in conjunction with Article 21(5),
21. failing to review an assessment referred to there, or failing to review it correctly, completely or in time, contrary to Article 21(3),
22. failing to check a simulation referred to there, or failing to check it in time, contrary to Article 21(6), first subparagraph,
23. breaching a provision of Article 21(7), first subparagraph, on ensuring an obligation referred to there,
24. failing to provide for a pre-contractual reflection period, contrary to Article 22(2) in conjunction with paragraph 3,
25. failing to keep a record, or failing to keep it correctly or completely, contrary to Article 22(4),
26. failing to inform an investor, or failing to inform them correctly, completely or in time, contrary to Article 22(6)(a) or (b), Article 23(8), second sentence, or (12), third subparagraph, or Article 24(2), second sentence,
27. failing to give a notice, or failing to give it correctly or in time, or failing to correct information, or failing to correct it in time, contrary to Article 23(12), first subparagraph,
28. acting contrary to an enforceable order under Article 23(14),
29. failing to keep a key investment information sheet up to date, contrary to Article 24(2), first sentence,
30. using a forum referred to there, contrary to Article 25(2), first sentence,
31. failing to ensure that a client receives information referred to there, contrary to Article 25(3)(d),
32. failing to ensure that a client has access to records referred to there, contrary to Article 26(b),
33. failing to ensure that a marketing communication is identifiable as such, contrary to Article 27(1), or
34. failing to use a language referred to there, contrary to Article 27(3).
(3) The regulatory offence may be sanctioned with a fine of up to EUR 500,000.
(4) In the case of a legal person or association of persons with an annual total turnover of more than EUR 10 million, the regulatory offence may, by way of derogation from subsection (3), be sanctioned with a fine of up to 5 per cent of the annual total turnover shown in the most recent available financial statements approved by the management body.
(5) In the case of a legal person or association of persons, the regulatory offence may, beyond subsection (3) or (4), be sanctioned with a fine of up to twice the benefit obtained from the breach, insofar as it can be quantified.
(6) Section 120(23) and (26) applies correspondingly.