GEN 2.29.1

Past version: effective from 01/08/2017 - 30/06/2019
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(1) In GEN Rule 2.2.2, a Person carries on the activity of Operating a Crowdfunding Platform if the Person:
(a) Operates a Loan Crowdfunding Platform; or
(b) Operates an Investment Crowdfunding Platform.
(2) A Person Operates a Loan Crowdfunding Platform under (1)(a) if it does both of the following:
(a) operates an electronic platform that facilitates the bringing together of potential lenders and borrowers; and
(b) administers a loan agreement that results from operating the electronic platform.
(3) If the Person referred to in (2) also provides a facility that assists a lender to transfer his rights and obligations under a loan agreement referred to in that paragraph, that activity is also included within Operating a Loan Crowdfunding Platform.
(4) A Person Operates an Investment Crowdfunding Platform under (1)(b) if it does both of the following:
(a) operates an electronic platform that facilitates the bringing together of potential investors and Persons who wish to obtain funding for a business or project, resulting in an investor making an Investment with the Person seeking funding; and
(b) administers an Investment that results from operating the electronic platform.
(5) If the Person referred to in (4) also provides a facility that assists an investor to sell an investment referred to in that paragraph, that activity is also included within Operating an Investment Crowdfunding Platform.
(6) In this Rule:
(a) "administer a loan agreement" means:
(i) provide information or perform other duties under the loan agreement on behalf of the borrower or lender;
(ii) take steps to obtain the repayment of the loan; or
(iii) exercise rights or perform obligations under the loan agreement on behalf of the borrower or lender;
(b) "administer an Investment" means:
(i) provide information or perform other duties relating to the Investment on behalf of the Issuer or investor;
(ii) take steps to obtain the payment of any amount payable by the Issuer to an investor; or
(iii) exercise rights or perform obligations relating to the Investment on behalf of the Issuer or investor;
(c) "electronic platform" means a website or other form of electronic media.
(7) A Person (A) administers a loan agreement or an Investment for the purposes of this Rule if A performs a function itself or through another Person who has been appointed by A, acts under an arrangement with A or acts at A's direction.
[Added] DFSA RMI201/2017 (Made 14th June 2017). [VER40/08-17]