Back Custom print Link Text Only Rich Text Print

  • CFP-2.1 CFP-2.1 General Requirements

    • CFP-2.1.1

      Crowdfunding borrowers and issuers must provide the minimum information required in this Section in their crowdfunding offer statements and disclosures provided on the platform. The information must be worded and presented in a ‘clear, concise and effective’ manner and must not be misleading or deceptive.

      Added: April 2022

    • CFP-2.1.2

      The minimum information required in crowdfunding offer statement, includes:

      (a) General risk warning about crowdfunding:
      1. crowdfunding is risky, companies using this facility include new or rapidly growing ventures and lending or investment in these types of ventures is speculative and carries high risks;
      2. you may lose your entire investment, and you should be in a position to bear this risk without undue hardship; and
      3. for equity crowdfunding offers: the value of your investment and any return on the investment could be reduced if the company issues more shares. Your investment is unlikely to be liquid which means you are unlikely to be able to sell your shares quickly or at all.
      (b) Information about the company (i.e. the borrower or issuer):
      1. company details: identity and legal form;
      2. business nature and organisational structure;
      3. main risks associated with the business, products, industry/sector/geography, legal/regulatory concerns;
      4. ownership capital structure;
      5. financial statements (audited statements for existing companies required to conduct audit as per local laws, and projected financial statements);
      6. key financial ratios;
      7. directors and senior managers;
      8. contact details; and
      9. details of convictions, penalties or administrative actions against the company and its directors or senior managers.
      (a) Information about the offer:
      1. details of the financing facility, interest/profit rates, maturity, payment terms, guarantee/collateral etc. (for financing crowdfunding offers);
      2. the rights associated with the shares on offer (e.g. voting and dividends), their custody and registration arrangements and buyback commitments (for equity crowdfunding offers);
      3. the offer period, the offer size, the maximum subscription under the offer and the basis for allotment;
      4. how the funds raised will be used;
      5. Any situations of actual or potential conflict of interest involving the direct and indirect interest of a director, substantial shareholder etc.
      (b) Information about investor rights:
      1. the right of retail clients to withdraw commitments;
      2. the availability of a communication facility on the platform and other methods to contact the company; and
      3. the applicable reporting and corporate governance obligations in accordance with the law.
      Added: April 2022

    • CFP-2.1.3

      Crowdfunding borrowers and issuers must also inform the lenders/investors, where relevant, about the use of an SPV for raising the funds and any impact on the lenders/investors rights.

      Added: April 2022

    • CFP-2.1.4

      For real estate crowdfunding offers, the following additional information must be disclosed:

      (a) details about the property, including its location and condition, and whether it is currently rented;
      (b) details about the seller’s legal title to the property such as whether it is freehold, leasehold and whether the seller is able to sell the property free of any encumbrance;
      (c) whether the property requires renovation or other work before it can be let;
      (d) the independent valuation report on the property;
      (e) the estimated annual charges and expenses relating to the property; and
      (f) the estimated annual rental income on the property.
      Added: April 2022

    • CFP-2.1.5

      The crowdfunding offers must clearly state that the borrowers/issuers and the information provided have not been reviewed or approved by the CBB.

      Added: April 2022

    • CFP-2.1.6

      The crowdfunding borrowers and issuers must not advertise their crowdfunding offers outside the platform. This requirement does not prevent the borrowers/issuers to refer people to the home page of the platform.

      Added: April 2022

    • CFP-2.1.7

      A crowdfunding issuer that has successfully completed its fundraising exercise on the crowdfunding platform must ensure that there is effective, transparent and regular communication with its crowdfunding participants including providing regular updates on the progress of the business of the issuer and the issuer’s financial position.

      Added: April 2022