INVESTORS
This distinction exists because Non-Sophisticated Investors require greater protection regarding their exposure to investment risk.
A Sophisticated investor is an individual or entity that
(1) based on the information provided to Goparity at the time of creating their account, qualifies as a "professional client" under Directive 2014/65/EU (e.g., institutional investors whose main activity involves investing in financial instruments), or
(2) has expressly requested Goparity to be treated as such.
By exclusion, an individual or entity is considered a Non-Sophisticated Investor when, based on the information provided to Goparity at the time of creating their account, they do not meet any of those legal requirements.
Non-Sophisticated Investors, before admission into our platform, must undergo a knowledge test and a simulation to bear loss. If, based on their answers, Goparity determines that investing certain amounts may not be suitable for their profile as a Non-Sophisticated Investor, a risk warning and some recommendations will be presented, or they may be advised that crowdlending investments may not be a suitable option for them.
If a Non-Sophisticated Investor intends to invest amounts that Goparity identifies as too high for their profile, they will be warned about the inherent risks of capital loss.
For Non-Sophisticated Investors, it is advised not to invest amounts exceeding:
A Non-Sophisticated Investor can always request to be treated as a Sophisticated Investor by emailing hello@goparity.com, in which case there will be no recommended maximum investment limits.
The recommended maximum capacity for non-sophisticated investors to bear capital losses is 10% of their net worth.