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  • CFP-1.2 CFP-1.2 Managing Conflicts of Interest

    • CFP-1.2.1

      Crowdfunding platform operators must not participate in any crowdfunding offer hosted on their platform.

      Added: April 2022

    • CFP-1.2.2

      Crowdfunding platform operators must maintain and operate effective internal rules to prevent conflicts of interest. Licensees must take appropriate steps to prevent, identify, and manage conflicts of interest between their shareholders, their managers or employees, or any natural or legal person linked to them by control and their clients, or between one client and another client. Licensees must disclose to their clients the general nature and sources of conflicts of interest and the steps taken to mitigate them.

      Added: April 2022

    • CFP-1.2.3

      Crowdfunding platform operators must not accept the following persons as borrowers/issuers on their crowdfunding platform:

      (a) Shareholders that hold 20% or more of share capital or voting rights of the platform;
      (b) Managers or employees of the platform; and
      (c) Any natural or legal persons linked to those shareholders, managers or employees by control.
      Added: April 2022

    • CFP-1.2.4

      Crowdfunding platform operators that accept as investors/lenders any of the persons referred to in Subparagraphs CFP-1.2.3 (a), (b) and (c) in their crowdfunding offers must fully disclose on their website the fact that they accept such persons as investors/lenders and information on the specific crowdfunding projects invested in. Licensees must ensure that such crowdfunding offers are funded under the same conditions as those of other investors/lenders and that persons under (a), (b) and (c) do not enjoy any preferential treatment or privileged access to information.

      Added: April 2022

    • CFP-1.2.5

      Crowdfunding platform operators must not provide direct or indirect financial assistance to lenders/investors to lend or invest in a crowdfunding borrower/issuer hosted on its platform.

      Added: April 2022

    • CFP-1.2.6

      Crowdfunding platform operators must not provide advice on the crowdfunding offers hosted on their platform. The existence of filtering tools on the platform is not regarded as advice if such tools provide information to clients in an objective and neutral manner that does not constitute a recommendation. Such tools include those that display results based on criteria relating to purely objective product features. Objective product features in this context could be pre-defined project criteria such as the economic sector, the instrument used and the interest rate, or the risk category where sufficient information regarding the calculation method is disclosed. Similarly, key financial figures calculated without any scope for discretion are also considered to be objective criteria.

      Added: April 2022