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Beehive P2P Limited.

Name

Beehive P2P Limited.

Legal Status:

DIFC Company

DFSA Reference Number:

F003177

Address

Unit 42B, Level 3, Gate Village Building 10, DIFC, PO Box 72479, Dubai, UAE

Telephone Number

971 4 401 9133

Date of Withdrawal

31-Jul-2017

Date of Licence

01-Mar-2017

Endorsements

Carrying on authorised Financial Services with or for Retail Clients Operating an Islamic Window Controlling Client Assets

Financial Service

Investments

Conditions


Crowdfunding risk disclosure




  1. Beehive P2P Limited must disclose prominently on its website the main risks to a lender of using a loan-based crowdfunding platform, including that:

    1. the lender may lose all or part of their money or may experience delays in being repaid;

    2. borrowers may include new businesses and, as many new businesses fail, a loan to such a borrower may involve high risks; and

    3. if for any reason Beehive P2P Limited ceases to carry on its business, the lender may lose all or part of their money or incur costs or experience delays in being repaid.
      Information about default rates



  2. Beehive P2P Limited must disclose prominently on its website the historical and expected default rates of borrowers when using its service. Information about historical default rates should cover services provided by Beehive P2P Limited and group members and cover the period since such services were first provided by it or another group member.
    Information about the service

  3. Beehive P2P Limited must disclose prominently on its website sufficient information so that Clients can easily understand how the service operates, including:

    1. how the platform operates;

    2. how the operator is remunerated for the service it provides, including fees and charges imposed;

    3. any financial interest of the operator or a connected person that may create a conflict of interest;

    4. the eligibility criteria for borrowers;

    5. what, if any, security is usually sought from borrowers, the circumstances in which it might be exercised and any limitations on its use;

    6. the circumstances, if any, in which a lender may withdraw a commitment to make a loan;

    7. what will happen if loans sought by a borrower either fail to meet, or exceed, the target level (that is, are under or over-funded);

    8. steps the operator will take if there is a material change in a borrower’s circumstances and the rights of the lender and borrower in that situation;

    9. how the operator will deal with overdue payments or a default by a borrower;

    10. measures it has in place to ensure the platform is not used for money-laundering or other unlawful activities; and

    11. contingency arrangements for the orderly administration of loans in the event that the operator ceases to carry on its business.
      Written loan agreement



  4. Beehive P2P Limited must ensure that, when a loan is made using its service, there is a written loan agreement in place between the borrower and lender that is legally enforceable and sets out sufficient details of the loan, the terms of repayment and the rights and obligations of the borrower and lender.

    Due diligence on borrowers

  5. Beehive P2P Limited must not permit a borrower to use its service unless the borrower is a body corporate.

  6. Beehive P2P Limited must conduct due diligence on each borrower before allowing it to use its service, including, as a minimum, taking reasonable steps to check the details of its incorporation and business registration, the identity, fitness and propriety of the borrower and its directors, officers and controllers, the financial strength and credit history of the borrower, the veracity of its business proposal and the commitment of the borrower, its directors and controllers to the business.
    Disclosure of information about the borrower

  7. Beehive P2P Limited must disclose prominently on its website sufficient information about each borrower and its business proposal so that lenders are properly able to assess the risk that the borrower may default on the loan.
    Material changes affecting a borrower



    1. Beehive P2P Limited must ensure that lenders to a borrower are clearly informed of:

      1. details of any material change relating to the borrower, its business or the carrying out of its proposal;

      2. any change in the rights of the lenders and the borrower resulting from the material change; and

      3. further steps, if any, Beehive P2P Limited is proposing to take as a result of the change.



    2. The information under

      1. must be provided to lenders as soon as practicable after Beehive P2P Limited becomes aware of the material change referred to in

        1. Lending limits







  9. Beehive P2P Limited must maintain effective systems and controls to ensure that a Retail Client using its service does not lend more than:

    1. US$5,000 to a single borrower; and

    2. US$50,000 in total in any calendar year using the service.
      Equal access to information



  10. Beehive P2P Limited must ensure that lenders who use its service each have access to the same information on its website about a borrower or lending proposal.
    Use of platform by Beehive or connected persons

  11. Beehive P2P Limited must ensure that if it or a connected person lends money using the platform:

    1. the loan by it or the connected person is on terms that are no more favourable than the terms offered to other lenders;

    2. the opportunity to lend money is not given to it or the connected person ahead of other lenders; and

    3. in the event of a default by a borrower, it or the connected person is not treated more favourably than other lenders.



  12. Beehive P2P Limited must take reasonable steps to ensure that it or a connected person does not:

    1. borrow money from a lender; or

    2. hold any direct or indirect interest in the capital or voting rights of a borrower.
      Forums



  13. If Beehive P2P Limited provides a website forum for lenders and/or borrowers to discuss funding proposals, it must:

    1. ensure that the forum is only accessible to clients;

    2. not itself participate in discussions on the forum; and

    3. take reasonable steps to monitor for and prevent posts on the forum that may be misleading or fraudulent.
      Facility for transfer of loans



  14. If Beehive P2P Limited provides a facility that assists the transfer of rights or obligations under a loan agreement, it must ensure that:

    1. the facility relates only to loans originally facilitated using its service;

    2. transfers can take place only between lenders who are already clients using the service and have initially lent money under loan agreements;

    3. lenders must transfer the rights and obligations relating to the whole of a loan made (and not just a part of the loan);

    4. potential transferees have access to all information on the website about the borrower that was available to earlier lenders; and

    5. fees it charges for the use of the facility are designed to recover its costs of providing the facility, rather than generating additional income.
      Information technology



  15.  

    1. Beehive P2P Limited must have adequate measures in place to ensure:

      1. its information technology systems are resilient and not prone to failure;

      2. business continuity in the event that an information technology system fails;

      3. protection of its information technology systems from damage, tampering, misuse or unauthorised access; and

      4. the integrity of data forming part of, or being processed through, its information technology systems.



    2. Beehive P2P Limited must review the measures referred to in

      1. at least annually to ensure they are adequate.
        Business cessation plan





  16. Beehive P2P Limited must maintain a business cessation plan that sets out appropriate contingency arrangements, including measures that have already been put in place, to ensure that there is an orderly administration of loan agreements in the event that it ceases to carry on its business.
    Clarity about regulated and unregulated parts of the business

  17. Beehive P2P Limited must take reasonable steps to ensure that lenders and borrowers who use a service provided by Beehive P2P Limited or another member of its group can clearly distinguish between:


    1. services that it carries on under its Licence and which are subject to regulation by the DFSA; and


    2. business that is carried on by other members of the group and is unregulated. 





Restrictions


Beehive P2P Limited may carry on the Financial Service specified above only for the purposes of, or in connection with, it operating a loan-based crowdfunding platform. 2. Beehive P2P Limited must not carry on the activity of Advising on Credit.


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