GEN 2.29.1

Past version: effective from 01/02/2021 - 31/01/2021
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(1) In GEN Rule 2.2.2, a Person carries on the activity of Operating a Crowdfunding Platform if the Personoperates:
(a) a Loan Crowdfunding Platform;
(b) an Investment Crowdfunding Platform; or
(c) a Property Investment Crowdfunding Platform.
(2) A Personoperates 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 who wish to obtain funding for a business or project; 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 Personoperates 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 (other than the sale of a property), 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) A Person operates a Property Investment Crowdfunding Platform under (1)(c) 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 sell a property, resulting in an investor making an investment in an individual property; and
(b) administers an Investment or a beneficial interest in a trust that results from operating the electronic platform.
(6) If the Person referred to in (4) or (5) also provides a facility that assists an investor to sell an investment referred to in those paragraphs, that activity is also included within operating a Crowdfunding Platform under the relevant paragraph.
(7) In this Rule:
(a) "administer a loan agreement" in (2) 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" in (4) 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) “administer an Investment or a beneficial interest in a trust” in (5) means:
(i) provide information or perform other duties relating to the Investment or trust on behalf of the investor;
(ii) take steps to obtain the payment of any amount payable to an investor;
(iii) exercise rights or perform obligations relating to the Investment or trust on behalf of an investor;
(iv) arrange for any service to be provided relating to the property;
(v) provide any service related to a Special Purpose Vehicle that holds title to the property; or
(vi) arrange for the sale of the property at the end of the investment period;
(d) "electronic platform" means a website or other form of electronic media;
(e) “property” means land or buildings and includes a part of a building, such as an apartment.
(8) A Person (A) administers a loan agreement or an Investment or a beneficial
interest in a trust 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.
(9) A Person invests in a property for the purposes of this Rule if the Person has an interest in the property whether legal or beneficial, direct or indirect, including if the Person has an Investment issued by a Special Purpose Vehicle that has an interest in the property.
[Added] DFSA RMI201/2017 (Made 14th June 2017). [VER40/08-17]
[Amended] DFSA RMI253/2019 (Made 26th June 2019). [VER44/07-19]
[Added] DFSA RMI288/2020 (Made 16th December 2020). [VER50/02-21]