French Regulator Urges Crowdfunding Platforms to Strengthen Protections

France’s financial markets regulator has called on crowdfunding platforms to improve investor checks and disclosures after inspections found shortcomings in investor knowledge tests and investment risk warnings.

The Autorité des Marchés Financiers (AMF) reviewed five crowdfunding platforms as part of its 2025 supervisory priorities. The review examined investor knowledge tests, assessments of investors’ capacity to bear losses, checks on key investment information sheets, complaints handling, and internal controls. 

Crowdfunding platforms are required by regulations to ask questions to check investors’ understanding of the risks associated with crowdfunding. Despite this, the AMF said several platforms used questionnaires where some mandatory questions were unclear, incomplete, or missing.

The regulator also found that some investments may have been made without the required risk warnings. Where warnings appeared, providers did not always retain evidence that investors had read them. Crowdfunding platforms are required to make clear that investors could lose their entire investment.

The AMF identified further breaches involving investment information sheets. These should explain who owns and manages a project, provide relevant financial information, and describe risks such as default, delayed or absent returns, and difficulties selling the investment.

“All of these systems are crucial for retail investors to be able to make informed investment decisions,” the AMF said.

It urged platforms to strengthen their practices and provide accessible complaints procedures without charging complainants, alongside clear and traceable information throughout the investment process.