COB A2.1.6

The following terms must be included in a Client Agreement between a Crowdfunding Operator and a Client that is a borrower, Issuer or seller:

(a) a restriction on the borrower, Issuer, or seller using any other crowdfunding service to raise funds during the commitment period;
(b) a restriction on the borrower, Issuer, or seller any Person that is Connected to the borrower, Issuer, or seller lending or financing, or arranging lending or finance for a lender or an investor using the service;
(c) a restriction on the borrower, Issuer, or seller advertising its proposal, or soliciting potential lenders or investors, outside the platform during the commitment period;
(d) a requirement on the borrower or Issuer to give reasonable advance notice to the operator of any material change affecting the borrower or Issuer, its business or the carrying out of its proposal;
(e) the obligations of the borrower or Issuer if there is any material change after funds have been provided; and
(f) an obligation on the borrower or Issuer to produce financial statements at least annually.
[Added] DFSA RMI202/2017 (Made 14th June 2017). [VER29/08-17]
[Amended] DFSA RMI254/2019 (Made 26th June 2019). [VER33/07-19]