Article 29: Disclosure
| Versions (5 versions) |
Effective from Jan 01 2024 - Nov 30 2021
To view other versions open the versions tab on the right
| 1- | The Debt-Based Crowdfunding Company shall clarify the nature of the business offered through the Debt-Based Crowdfunding Platform on the same Platform. The Company shall also ensure that the nature of the relationship between the finance process parties is clear. | |
| 2- | The Debt-Based Crowdfunding Company shall prepare the appropriate declarations and pledges and enable the Participants and the Institutional Beneficiary to read and agree to them before using the Debt-Based Crowdfunding Platform. | |
| 3- | The Debt-Based Crowdfunding Company shall clearly share on the Platform basic information about how the service works. Such information shall include at least the following: | |
| a. | Details on how the Debt-Based Crowdfunding Platform works. | |
| b. | Details of the service fees. | |
| c. | Any financial interest of the Debt-Based Crowdfunding Company or relevant person that may lead to a conflict of interest. | |
| d. | Eligibility criteria for the Institutional Beneficiary. | |
| e. | The Finance Amount requested by the Institutional Beneficiary. | |
| f. | Eligibility criteria for the Participant. | |
| g. | The mechanism of dealing with the funds of the Participants when the Finance Amount requested is not covered. | |
| h. | The steps taken by the Debt-Based Crowdfunding Company and the rights of relevant parties if a material change occurs in the conditions of the Institutional Beneficiary. | |
| i. | The mechanism followed by the Debt-Based Crowdfunding Company in the event of payment default or deficiency by the Institutional Beneficiary. | |
| j. | The measures put in place by the Debt-Based Crowdfunding Company for information security and data protection. | |
| k. | Contingency arrangements in the event the Debt-Based Crowdfunding Platform ceases to operate. | |
| 4- | The Debt-Based Crowdfunding Company shall clearly share on its electronic Platform all relevant information about each Institutional Beneficiary, including at least the following: | |
| a. | Detailed description of the Institutional Beneficiary’s project for which it aims to obtain the Finance Amount, including the total Finance Amount requested and how the funds will be used. | |
| b. | The results of the Institutional Beneficiary due diligence process conducted by the Debt-Based Crowdfunding Company. | |
| c. | A clear statement not to consider displaying the project on the Debt- Based Crowdfunding Platform to be advice to provide financing to the Institutional Beneficiary. | |
| d. | Details of the term cost and any other rights related to the financing. | |
| e. | Guarantees and any restrictions on their use. | |
| f. | Charges and fees of the Debt-Based Crowdfunding Company for the project specified. | |
| g. | Payment terms, and the preventive controls and measures taken. | |
| 5- | The Debt-Based Crowdfunding Company shall clearly share on its electronic Platform information about the significant risks that Participants may face from using the Debt-Based Crowdfunding Platform. Such information shall include, for example, the following: | |
| a. | The potential for Participants to be exposed to material risks, including the loss of some or all of their money in the event of the Institutional Beneficiary’s default. | |
| b. | A clear and detailed list of the potential risks that the Institutional Beneficiary may face. | |