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Withdrawal rights in crowdfunding transactions: The precontractual reflection period

Withdrawal rights in crowdfunding transactions: The precontractual reflection period
Withdrawal rights in crowdfunding transactions: The precontractual reflection period
With a view to increasing the level of investor protection within the crowdfunding market, Article 22 ECSPR provides for a reflection period during which prospective non-sophisticated investors can revoke an offer to invest or an expression of interest in a particular crowdfunding offer without giving a reason and without incurring a penalty. That way, it seeks to prevent situations whereby a potential investor, by accepting a crowdfunding offer, also accepts an offer to enter a legally binding contract without any possibility of withdrawal within an adequate period. This Chapter attempts to shed further light on this provision, by analysing its scope of application, the conditions for exercising the right to withdraw and the relevant obligations of crowdfunding platforms. In addition, it briefly discusses the effectiveness of the precontractual reflection period in achieving its stated objectives and puts forward some recommendations for future consideration by EU policy makers.
Edward Elgar Publishing
Serdaris, Konstantinos
82e4c395-ff64-4e39-995d-1131dcd96e26
Macchiavello, Eugenia
Serdaris, Konstantinos
82e4c395-ff64-4e39-995d-1131dcd96e26
Macchiavello, Eugenia

Serdaris, Konstantinos (2022) Withdrawal rights in crowdfunding transactions: The precontractual reflection period. In, Macchiavello, Eugenia (ed.) Regulation on European Crowdfunding Service Providers for Business: A Commentary. (Elgar Commentaries in Financial Law) Edward Elgar Publishing. (In Press)

Record type: Book Section

Abstract

With a view to increasing the level of investor protection within the crowdfunding market, Article 22 ECSPR provides for a reflection period during which prospective non-sophisticated investors can revoke an offer to invest or an expression of interest in a particular crowdfunding offer without giving a reason and without incurring a penalty. That way, it seeks to prevent situations whereby a potential investor, by accepting a crowdfunding offer, also accepts an offer to enter a legally binding contract without any possibility of withdrawal within an adequate period. This Chapter attempts to shed further light on this provision, by analysing its scope of application, the conditions for exercising the right to withdraw and the relevant obligations of crowdfunding platforms. In addition, it briefly discusses the effectiveness of the precontractual reflection period in achieving its stated objectives and puts forward some recommendations for future consideration by EU policy makers.

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More information

Accepted/In Press date: December 2022

Identifiers

Local EPrints ID: 469655
URI: http://eprints.soton.ac.uk/id/eprint/469655
PURE UUID: f927889a-85b3-4906-b721-36b02017e67f
ORCID for Konstantinos Serdaris: ORCID iD orcid.org/0000-0002-6637-5847

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Date deposited: 21 Sep 2022 17:02
Last modified: 15 Jan 2024 17:42

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Contributors

Editor: Eugenia Macchiavello

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