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Dubai Financial Services Authority (DFSA): Contents

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Aug 1 2017 - Jun 30 2019Jul 1 2019 onwards

GEN 2.29.1

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The definitive version of DFSA handbook text is the PDF version as that is the text of the instrument as made and published by the DFSA.

To view past versions of this module in PDF format, please visit the Archive.

(1) In GEN Rule 2.2.2, a PersonG carries on the activity of Operating a Crowdfunding Platform if the PersonG operates:
(a) a Loan Crowdfunding PlatformG ;
(b) an Investment Crowdfunding PlatformG ; or
(c) a Property Investment Crowdfunding PlatformG .
(2) A PersonG operates a Loan Crowdfunding PlatformG under (1)(a) if it does both of the following:
(a) operates an electronic platform that facilitates the bringing together of potential lenders and borrowers who wish to obtain funding for a business or project; and
(b) administers a loan agreement that results from operating the electronic platform.
(3) If the PersonG referred to in (2) also provides a facility that assists a lender to transfer his rights and obligations under a loan agreement referred to in that paragraph, that activity is also included within operating a Loan Crowdfunding PlatformG .
(4) A PersonG operates an Investment Crowdfunding PlatformG under (1)(b) if it does both of the following:
(a) operates an electronic platform that facilitates the bringing together of potential investors and PersonsG who wish to obtain funding for a business or project (other than the sale of a property), resulting in an investor making an InvestmentG with the PersonG seeking funding; and
(b) administers an InvestmentG that results from operating the electronic platform.
(5) A PersonG operates a Property Investment Crowdfunding PlatformG under (1)(c) if it does both of the following:
(a) operates an electronic platform that facilitates the bringing together of potential investors and PersonsG who wish to sell a property, resulting in an investor making an investment in an individual property; and
(b) administers an InvestmentG that results from operating the electronic platform.
(6) If the PersonG referred to in (4) or (5) also provides a facility that assists an investor to sell an investment referred to in those paragraphs, that activity is also included within operating a Crowdfunding Platform under the relevant paragraph.
(7) In this RuleG :
(a) "administer a loan agreement" in (2) means:
(i) provide information or perform other duties under the loan agreement on behalf of the borrower or lender;
(ii) take steps to obtain the repayment of the loan; or
(iii) exercise rights or perform obligations under the loan agreement on behalf of the borrower or lender;
(b) "administer an InvestmentG " in (4) means:
(i) provide information or perform other duties relating to the InvestmentG on behalf of the IssuerG or investor;
(ii) take steps to obtain the payment of any amount payable by the IssuerG to an investor; or
(iii) exercise rights or perform obligations relating to the InvestmentG on behalf of the IssuerG or investor;
(c) “administer an InvestmentG ” in (5) means:
(i) provide information or perform other duties relating to the InvestmentG on behalf of the investor;
(ii) take steps to obtain the payment of any amount payable to an investor;
(iii) exercise rights or perform obligations relating to the InvestmentG on behalf of an investor;
(iv) arrange for any service to be provided relating to the property;
(v) provide any service related to a Special Purpose VehicleG that holds title to the property; or
(vi) arrange for the sale of the property at the end of the investment period;
(d) "electronic platform" means a website or other form of electronic media;
(e) “property” means land or buildings and includes a part of a building, such as an apartment.
(8) A PersonG (A) administers a loan agreement or an Investment for the purposes of this RuleG if A performs a function itself or through another PersonG who has been appointed by A, acts under an arrangement with A or acts at A's direction.
(9) A PersonG invests in a property for the purposes of this RuleG if the PersonG has an interest in the property whether legal or beneficial, direct or indirect, including if the PersonG has an InvestmentG issued by a Special Purpose VehicleG that has an interest in the property.
[Added] DFSA RMI201/2017 (Made 14th June 2017). [VER40/08-17]
[Amended] DFSA RMI253/2019 (Made 26th June 2019). [VER44/07-19]