ADVOKS GLOBAL · KENYA
The Capital Markets (Investment-Based Crowdfunding) Regulations
24. Requirements of the trading facility
Edition: 2022-12-31 · In force
24. Requirements of the trading facility
(1)A crowdfunding platform operator may operate a trading facility for the transfer of the crowdfunded investment instruments originally offered on the crowdfunding platform.(2)A crowdfunding platform operator providing such an additional facility shall comply with the following requirements—(a)have in place transparent rules and procedures for fair and orderly trading on the crowdfunded investment instruments;(b)inform its platform users on the nature of the facility, including applicable fees;(c)provide prospective investor(s) intending to buy the investment instruments availed on the facility with information that was availed to the earlier investors and information on the performance of the investment availed on the facility; and(d)ensure that the prospective investor(s) affirms to the risk acknowledgment form under regulation 29.(3)The Cabinet Secretary shall formulate such rules as may be required to regulate such trading activities.