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  • AU-4.6 AU-4.6 Additional Requirements for Licensing of Crowdfunding Platform Operator

    • AU-4.6.1

      This section sets out additional licensing requirements for crowdfunding platform operator, including conventional and Shari'a-compliant crowdfunding platform operators.

      Added: October 2017

    • AU-4.6.2

      The CBB may license a person as a crowdfunding platform operator provided that:

      (a) [This Subparagraph was deleted in April 2022];
      (b) The applicant is able to demonstrate that will be able to operate an orderly, fair and transparent market in relation to the transactions offered through its electronic facilities;
      (c) The applicant appoints at least two approved persons. One of the approved persons must be a Compliance Officer who can also handle the responsibilities of the MLRO, and the second person is the CEO of the crowdfunding platform operator;
      (d) The business rules of the crowdfunding platform operator must make satisfactory provisions–
      (i) For the protection of investors/lenders and public interest;
      (ii) To ensure proper functioning of the platform;
      (iii) To promote fairness and transparency;
      (iv) To manage any conflict of interest that may arise;
      (v) To promote fair treatment of its users or any person who subscribe for its services;
      (vi) To promote fair treatment of any person who is hosted, or applies to be hosted, on its platform;
      (vii) To ensure proper regulation and supervision of its users, or any person utilising or accessing its platform, including suspension and expulsion of such persons;
      (viii) To provide an avenue of appeal against the decision of the licensed crowdfunding platform operator.
      (ix) To clarify the criteria for admission of lenders/investors and the exclusion, suspension, expulsion and re-admission of lenders/investors therefrom or thereto;
      (x) To describe the proposed technology, IT system and disaster recovery plan; and
      (xi) For the oversight and controls over outsourced activities, if any.
      Amended: April 2022
      Added: October 2017