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13 Feb 2017, 01:02 am

Notice of Consultation Paper Release


The DFSA has released the following for Consultation:

Consultation Paper No. 111 – Crowdfunding: SME Financing Through Investing

In 2016, the DFSA announced its preparedness to deal with the evolving world of financial technology, or FinTech. Since then, the DFSA has been dealing with, and discussing opportunities with, a number of interested parties in the FinTech area. Some of these discussions have been in the area of crowdfunding.

Crowdfunding is a way in which people, organisations and businesses (including business start-ups) can raise money through online portals (crowdfunding platforms) to finance or re-finance their activities and enterprises.

In January 2017, the DFSA issued a Consultation Paper (CP) to regulate the activity of Operating a loan-based Crowdfunding Platform (CP109).  As part of the DFSA’s work in this area, we are proposing to develop a framework for firms intending to operate an investment-based crowdfunding platform.

Our proposal is an extension of the proposals in CP109, which covers what we believe to be the regulatory fundamentals for Crowdfunding operators.  In addition, it deals with specific risks for investment-based Crowdfunding Platforms mainly in the areas of:

Who is this CP aimed at?
This paper will be of interest to:
• Persons who intend to set up a loan-based crowdfunding platform in the DIFC;
• Authorised Firms providing financial services in the DIFC;
• Persons providing legal, accounting, audit, oversight of compliance services in the DIFC, or who wish to provide such services; and
• Potential investors.

What are the next steps?
The DFSA invites interested parties to provide their views and comments on the issues outlined in the consultation paper, using the Table of Comments provided, to [email protected]. Please mention the Consultation Paper number (111) in the subject line.

The deadline for providing comments on this consultation is 15 March 2017.  This paper can be viewed on the DFSA website or by clicking on the above link.



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