73E. Operating a Private Financing Platform

(1) Operating a Private Financing Platform is a specified kind of activity.
(2) A person is Operating a Private Financing Platform where the person –
(a) introduces person A to person B, by means of an electronic platform for the purpose of person A providing credit to person B;
(b) introduces person A to person B by means of an electronic platform for the purpose of person A directly or indirectly buying or subscribing for a Specified Investment issued by person B;
(c) introduces person A to person B by means of an electronic platform for the purpose of person A directly or indirectly buying an instrument acknowledging or creating indebtedness arising from the supply of goods or the delivery of services by person B;
(d) enters into an arrangement with person A for the purpose of facilitating the activity described in (a), (b), or (c), whether through an intermediary investment vehicle or otherwise;191
(e) facilitates an arrangement described in (d);
(f) holds or controls Client Money or Arranges Custody in connection with an arrangement described in (a), (b), (c) or (d), above; or
(g) operates an incidental facility on a Private Financing Platform enabling person A to offer its rights in an arrangement described in (a), (b), (c) or (d) to another person.
(3) For the purposes of this paragraph -
(a) a “Private Financing Platform” is an undertaking that uses an electronic platform to facilitate the provision of financing from person A, whether in the form of debt, equity or otherwise, to person B for use by person B;
(b) an “electronic platform” means a website or other form of electronic media;
(c) to “facilitate” means, whether carried out by a person Operating a Private Financing Platform or under an arrangement with another person:
(i) to provide information to person A relating to a Specified Investment offered, directly or indirectly, by person B;
(ii) to take steps to obtain the repayment to person A of a debt owed by person B, directly or indirectly, to person A; or
(iii) to exercise rights or perform obligations relating to the Specified Investment on behalf of person A; and
(d) an “arrangement” includes the sale by a person Operating a Private Financing Platform to person A of shares or other rights in, or conferred by, any investment vehicle, established, owned or managed by the person Operating a Private Financing Platform.
Amended on (13 January, 2020).