ADVOKS GLOBAL · KENYA
The Capital Markets (Investment-Based Crowdfunding) Regulations
26. General obligations
Edition: 2022-12-31 · In force
26. General obligations
(1)Every crowdfunding platform operator shall disclose and display on its platform relevant information relating to the platform and its use, including—(a)how the platform operates;(b)users rights and responsibilities;(c)eligibility criteria for prospective issuers and investors;(d)investor education materials;(e)complaint handling and dispute resolution procedures;(f)disclaimers and limitation of liability, highlighting the platforms legal liability for damages incurred by its users; and(g)related fees and charges for using the platform.(2)In addition to the requirements set out in sub-regulation (1), a crowdfunding platform operator shall undertake—(a)to establish custodial arrangements as required by these Regulations;(b)to monitor and ensure compliance of its rules;(c)to take reasonable steps to prevent fraud and ensure compliance with these Regulations and relevant laws;(d)to maintain a register and records of all investors and issuers including details of the management of all issuers and details of investor holdings;(e)to avail any relevant document or information to the investor upon request;(f)to notify the Authority immediately of any material changes that may occur during operations which would affect its authorization and licensing;(g)to comply with continuous reporting obligations as specified by these Regulations; and(h)to perform any other obligation as may be required by these Regulations or the Authority.