Civil Liability for the Key Investment Information Sheet in Denmark

Abstract

Articles 23(9) and 24(4) of the ECSPR sets out the liability of “at least” the project owner or its administrative, management or supervisory bodies for the information given in the key investment information sheet (KIIS). Further, articles 23(10) and 24(5) of the ECSPR oblige EU Member States to ensure that their laws, regulations and administrative provisions on civil liability apply to those responsible for the key investment information sheet in situations where the sheet contains misleading or inaccurate information and where the information sheet omits key information needed to aid potential investors. No Danish legislation has been enacted regulating civil liability for the key investment information sheet. This article discusses the civil liability regime between the project owner and the CSP who are involved in preparing the key investment information sheet.

The article finds that the project owner is the main responsible for the accuracy of the key investment information sheet and as such will be the party to mainly be held responsible for any civil claims resulting from errors and omissions in the information sheet. Until legislation is enacted otherwise, the crowdfunding service providers’ civil liability for the key investment information sheet would most likely be limited to such errors, misleading information and omissions in the information sheet that result from inadequate procedures adopted by the crowdfunding service providers or their failure to comply with such procedures.