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  • CFP-1.3 CFP-1.3 Due-diligence of crowdfunding borrowers/issuers

    • CFP-1.3.1

      Crowdfunding platform operators must conduct due-diligence of crowdfunding borrowers/issuers which includes at minimum procedures to confirm the following:

      (a) The identity of the company through its commercial registration (or Legal Entity Identifier where relevant) and its registered office and principal place of business;
      (b) The identity and place of domicile of the company’s owners and key management personnel;
      (c) That the borrower/issuer and its key personnel have no criminal record in respect of local laws in the fields of commercial law, insolvency law, financial services law, anti-money laundering law, fraud law or professional liability obligations;
      (d) That the borrower/issuer is not established in a UN sanctioned or non-cooperative jurisdiction or in a high-risk country;
      (e) The borrower/issuer’s current state and past performance, credit history and business valuation (where relevant);
      (f) That the business is being operated in accordance with applicable laws (in the case of overseas crowdfunding borrowers/issuers a confirmation that the overseas jurisdiction allows hosting of businesses on crowdfunding platforms of other jurisdictions); and
      (g) That the crowdfunding offering statement provided by the borrower/issuer is complete and not misleading.
      Added: April 2022

    • CFP-1.3.2

      Crowdfunding platform operators that allow real estate crowdfunding on their platforms must undertake the following due-diligence prior to hosting a real estate crowdfunding offer:

      (a) Confirm that the offer is for an income producing property and not a new development or construction project;
      (b) Confirm the identity of the seller, including, if it is a body corporate, details of its incorporation and business registration;
      (c) Ensure that the seller holds valid legal title to the property; and
      (d) This Subparagraph was deleted in July 2022;
      (e) Obtain a valuation report from the crowdfunding borrower/issuer provided by an independent, professional and reputable valuer.
      Amended: July 2022
      Added: April 2022