ADVOKS GLOBAL · KENYA
The Capital Markets (Investment-Based Crowdfunding) Regulations
29. Risk acknowledgement form
Edition: 2022-12-31 · In force
29. Risk acknowledgement form
(1)A crowdfunding platform operator shall require each investor to affirm to a risk acknowledgement form, prior to acceptance of the offer, in which the investor affirms that the investor—(a)understands that the proposed investment is a risky investment;(b)has ability to absorb the complete loss of the amount invested;(c)understands that they may not be able to sell the securities, or investment instruments;(d)has been provided with the required disclosures for the offer; and(e)understands that crowdfunding investments are not covered by the Investor Compensation Scheme under the Act.(2)The information in the risk acknowledgment form shall be provided in a manner that is clear and easily understood by all investors.(3)The information in the risk acknowledgment form shall be written in such a manner as to be capable of being read with reasonable ease by the investor.(4)The crowdfunding platform operator shall obtain and retain the self-declared risk acknowledgement forms from the investors prior to them investing on a crowdfunding platform.