The Capital Markets (Investment-Based Crowdfunding) Regulations

30. Due diligence

Edition: 2022-12-31 · In force

(1)A crowdfunding platform operator shall carry out due diligence on prospective issuers and investors intending to use its platform.

(2)The scope of the due diligence exercised by the operator shall include taking reasonable steps to—

(a)conduct background checks on the issuer and investor;

(b)determine the level of sophistication of the investor;

(c)conduct fitness and probity checks on the directors and management;

(d)interrogate the information in the issuer’s disclosure documents lodged before they are made accessible to investors through the platform;

(e)ensure their compliance with anti-money laundering rules in place; and

(f)ensure compliance with the disclosure requirements.