Licensing Solutions for Crowdfunding Platforms and Services | Pre-licensing Assessment | Crowdfunding Licence Application Management | Post-licensing Risk and Compliance Support

We offer a comprehensive set of solutions to help you obtain and maintain a crowdfunding licence, tailored to:

• Your business goals and objectives
• Your client demographics
• Your countries of operation
• The size of your business
• The available human and technology resources
• Your risk appetite
• Your governance structure
• The products that you offer
• Regulated crowdfunding platforms' obligations covering risk and compliance management under financial laws and regulations, the applicable financial licensing requirements, AML/CFT laws, privacy laws, consumer protection laws, and more

We have designed our regulatory licensing solutions to help you navigate the complexities of the crowdfunding licensing regime in a commercially oriented and goal-focused manner, providing effective support for all stages of the crowdfunding platforms’ licensing process, including but not limited to the following aspects:

• Crowdfunding Licence Guidance: Advising on a wide range of aspects associated with crowdfunding platforms' licensing as it relates to your specific situation
• Pre-licensing assessment: Covering compliance gap analysis as well as risk and compliance assessment
• Pre-licensing support:

• Drafting the necessary policies and procedures to help you comply with the crowdfunding platforms’ licensing requirements and the crowdfunding regulations
• Developing internal controls to help you meet your obligations under the licensing regime for crowdfunding platforms

• Crowdfunding Licence Application Support: Covering the entire licensing process
• Post-licensing Support: Covering

• Ongoing compliance advice
• Comprehensive second-line risk and compliance support, including leading the implementation of your risk management framework (RMF), compliance management framework (CMF), compliance monitoring program (CMP), compliance calendar and checklist, ongoing risk assessments, internal and external reporting, outsourced providers' management, and more
• AML/CFT advice
• AML/CFT compliance management
• Compliance assurance solutions, including compliance assurance program (CAP) development, implementation, and internal control testing

 

Jurisdictional Coverage of our Crowdfunding Licence Solutions

We can help you apply for a crowdfunding licence or its equivalents in the following jurisdictions:

• Australian Crowdfunding Licence (AFSL): issued by the Australian Securities and Investments Commission (ASIC) under the Corporations Act 2001, specifically within the framework of the crowd-sourced funding (CSF) regime. You can visit our Crowdfunding AFSL page for more information.
• United States Crowdfunding Licence: issued by the Securities and Exchange Commission (SEC) under the Jumpstart Our Business Startups (JOBS) Act, specifically through "Regulation Crowdfunding".
• United Kingdom Crowdfunding Authorisation: issued by the Financial Conduct Authority (FCA), requiring adherence to the Financial Services and Markets Act 2000. You can visit our Crowdfunding FCA Authorisation page for more information.
• Singapore Capital Markets Licence: issued by the Monetary Authority of Singapore (MAS) in line with provisions of the Securities and Futures Act 2001  and the Monetary Authority of Singapore Act 1970. You can visit our Singaporean Crowdfunding Licence page for more information.
• New Zealand Licence: issued by the Financial Markets Authority (FMA) under provisions of the Financial Markets Conduct Act 2013 and a specific set of standard crowdfunding licensing conditions.  You can visit our FMA Crowdfunding Service Licence page for more information.
• European Union: issued under the  European Crowdfunding Service Providers Regulation (ECSPR).
• Prominent Financial Centres and Offshore Tax Havens: We also offer crowdfunding licensing solutions for prominent financial centres and offshore tax havens.

• Crowdfunding Licensing regime in the Cayman Islands: Where the Cayman Islands Monetary Authority (CIMA) may regulate crowdfunding platforms under the Securities Investment Business Act (2020 Revision), depending on the structure of the offering.
• Crowdfunding Licensing regime in Bermuda: Where the Bermuda Monetary Authority (BMA) may oversee crowdfunding platforms under the Investment Business Act 2003 if the platform involves regulated investment activity.
• Crowdfunding Licensing regime in the British Virgin Islands: Where the British Virgin Islands Financial Services Commission (BVI FSC) may grant licences to crowdfunding platforms under the Securities and Investment Business Act (Revised 2020), depending on the services provided.
• Crowdfunding Licensing regime in Malta: Where the Malta Financial Services Authority (MFSA) regulates crowdfunding platforms, providing a comprehensive and supportive regulatory framework under the Crowdfunding Rules.
• Crowdfunding Licensing regime on the Isle of Man: Where the Isle of Man Financial Services Authority (IOMFSA) may regulate crowdfunding platforms under the Financial Services Act 2008, depending on the platform’s structure and whether it triggers regulated activity.
• Crowdfunding Licensing regime in Vanuatu: Where the Vanuatu Financial Services Commission (VFSC) may regulate crowdfunding platforms under the Financial Dealers Licensing Act (CAP 70) if the activities fall within existing investment or securities frameworks.
• Crowdfunding Licensing regime in Seychelles: Where the Seychelles Financial Services Authority (FSA) may regulate crowdfunding platforms under the Securities Act, 2007, if they engage in regulated securities business.

 

Service Coverage

We offer comprehensive support for a wide range of crowdfunding licence applications tailored to meet the specific needs of the following businesses:

• Equity Crowdfunding Platforms
• Lending-Based Crowdfunding Platforms
• Rewards-Based Crowdfunding Platforms
• Donation-Based Crowdfunding Platforms
• Real Estate Crowdfunding Platforms
• Debt Crowdfunding Platforms
• Royalty-Based Crowdfunding Platforms
• Hybrid Crowdfunding Platforms
• Community-Based Crowdfunding Platforms
• Microfinance Crowdfunding Platforms
• P2P Insurance Crowdfunding Platforms
• Broker-Dealer or Funding Portals

Given that crowdfunding platforms often provide peer-to-peer lending services, it is worth mentioning that we also offer licensing solutions for P2P services and platforms across different global financial markets. You can find more information on our P2P Licencsing Solutions page.

You can find more information about our crowdfunding licensing solutions below.

 

 

Crowdfunding Platform’s Licensing Preparation

Pre-licensing Compliance Assurance

Our crowdfunding licensing solutions cover the following focus areas:

• Compliance Goals Analysis: We review your business-specific goals and resources against the suitability criteria for a crowdfunding licence
• Initial Consultation: We provide guidance on potential risk and compliance issues that may arise during the crowdfunding platform's licensing process
• Choosing the Right Jurisdiction: We assist in evaluating regulatory, risk, and compliance environments to determine the most suitable jurisdictions for your Crowdfunding Licence, tailored to suit your:

• business objectives,
• operational capacity,
• client base,
• markets of operations,
• and other relevant factors

• Gap Analysis: We identify gaps between your existing operations and regulatory requirements and help you align them in a commercially oriented manner
• Crowdfunding Licence Application Plan: We help you establish a roadmap to effectively meet the crowdfunding licence conditions

 

Crowdfunding Licensing Guidance

Selecting the right compliance model is crucial not only for navigating the licensing process but also for maintaining ongoing compliance and avoiding potential breaches. Our crowdfunding licensing solution covers:

• Compliance Model Selection: To help you best comply with the crowdfunding licensing regime and related risk and compliance obligations.
• Corporate Governance Model Selection: We offer practical guidance on establishing effective corporate governance practices that support your risk and compliance oversight.
• Operations Model Advisory: We advise you on optimising your operational and governance models to help you efficiently comply with the licensing requirements for crowdfunding platforms and other applicable obligations for regulated crowdfunding platforms, keeping in mind your specific circumstances, available resources and business goals.

 

 

Entering Regulated Environment

We help businesses transition from an unregulated environment to operating under the crowdfunding licensing regime, helping them meet their obligations as a crowdfunding licence holder.

We also assist already regulated businesses in aligning their existing risk and compliance management structures with the crowdfunding licensing regime and the local regulatory requirements. Our focus areas for this service include:

• New businesses
• Existing crowdfunding platforms operating in unregulated markets
• Crowdfunding businesses expanding into foreign jurisdictions
• Financial institutions and/or service providers with established risk and compliance frameworks seeking to introduce crowdfunding trading as a new product.

 

Multi-Jurisdictional Compliance

With years of experience managing risk and compliance obligations for businesses operating under multiple financial licences across various jurisdictions, we help businesses remain globally compliant with the regulatory compliance obligations for crowdfunding platforms and services.

 

Crowdfunding Licence and Wholesale Markets

Getting a crowdfunding licence may not always be the best fit for all. For example, a retail market expansion may not always align with your goals or the products you offer.

Operating in the wholesale environment can sometimes be a more suitable option. We offer a wider range of risk and compliance management solutions to assist crowdfunding platforms that:

• Operate in the wholesale markets
• Operate under exemptions from the crowdfunding platforms' licensing regime
• Offer services to sophisticated, eligible, and wholesale investors

We help them comply with the regulatory compliance obligations that are not caught by the crowdfunding platforms' licensing regime, but that still have to be addressed and handled, including:

• Advertisement Rules
• Financial Service Provider (FSP) registration
• Fair Dealing Regulations
• Risk Management
• Outsourced Providers' Oversight
• Restrictions on offering services to retail investors (an integral part of the crowdfunding platforms' licensing regime)
• Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) laws and regulations, including your AML/CFT registration. You can visit our Specialised AML/CFT page for Crowdfunding Platforms for more information.
• Data Management Laws and Regulations

 

Crowdfunding Licence Application

We can assist with your crowdfunding licence application through ongoing engagement in the crowdfunding platforms’ licensing process:

• Document Compilation and Review: We compile and review all required supporting documents to support your crowdfunding licence application.
• Application Form Completion: We help you complete the forms so that all material information is accurate and complete.
• Pre-Submission Review: We can arrange a pre-submission review session with key stakeholders to ensure all parts of your crowdfunding licence application are understood and agreed upon. This session aligns application details with the actual situation, removing ambiguity.
• Regulatory Liaison: We manage the end-to-end submission process, maintaining clear and effective communication channels throughout the crowdfunding platforms' licensing process.
• Timeline Management: We closely monitor and adhere to all necessary deadlines, providing timely updates and adjustments to keep the licence application process on track.

 

Resolving Crowdfunding Licensing Issues

Having competent compliance advisors is crucial when licensing issues arise. Therefore, our crowdfunding platform's licensing solutions include a range of services to address and resolve these issues effectively:

• Remediation Solutions for Crowdfunding Licence Applicants: We address and remediate risk and compliance issues identified by regulators, helping your operations align with the crowdfunding platforms' regime requirements.
• Specific crowdfunding licence Conditions Compliance: We can help you manage additional conditions imposed on your crowdfunding licence, developing a tailored action plan to maintain compliance and facilitate the eventual removal of these conditions with minimal disruption to your business operations.
• Licensing Issues Handling: We address common licensing issues encountered during the crowdfunding platform'' licensing process, providing you with solutions to navigate and resolve these challenges efficiently.
• Further Information: You can visit our Compliance Remediation Solutions page for more information.

 

Post-Licensing Support

We offer a full range of ongoing risk and compliance solutions for licensed crowdfunding platforms. Our services include, but are not limited to:

Ongoing Risk and Regulatory Compliance

• Regulated Crowdfunding Platforms' Obligations Guidance: We can advise your risk, compliance, management and other teams on meeting the requirements of the crowdfunding licensing regime and other regulatory compliance obligations. You can visit our Compliance Consultancy Service page for more information.
• Regulatory Risk and Compliance Management: We provide dedicated compliance managers to manage your overall compliance. For more information, visit our Specialised Compliance Management Solutions page for Crowdfunding Platforms.
• Compliance Assurance Solutions: As part of our compliance assurance solutions, we offer:
• Compliance Assurance Program (CAP) development and testing options
• Internal Controls Design option
• Internal Controls Testing option
• Internal AML/CFT Review option
• Statutory AML/CFT Audit option
• Compliance Training Solutions: We offer training programs to different teams on complying with:
• Regulated crowdfunding platforms’ obligations for risk, regulatory compliance management, and crowdfunding regulations. You can visit our Compliance Training page for more information.
• Crowdfunding platforms’ AML/CFT obligations and operational best practices for fraud prevention. You can visit our AML/CFT Training page for more information.
• Crisis Management Planning: We can develop proactive strategies to manage potential compliance crises effectively.
• Anti-Money Laundering (AML) and Counter Terrorist Financing Solutions: We provide a full range of AML/CFT solutions for crowdfunding platforms. For more information, visit our Specialised AML/CFT Solutions page for Crowdfunding Platforms.
• Advanced Compliance Technologies: We can assist you with selecting and integrating advanced technology solutions, such as compliance automation tools and regulatory technology (RegTech), to streamline compliance processes without disrupting operations.
• Risk and Compliance Framework Adjustments: Including adjustments to risk management frameworks (RMFs), compliance monitoring programs (CMPs), compliance management frameworks (CMFs), and other core procedures and policies to align them with:
• new business goals
• regulatory changes
• changes in your operations
• evolving market conditions
• changes in stakeholders’ risk appetites (your banking partners, insurance companies, liquidity providers, etc.).

 

 

Risk and Compliance Obligations for Crowdfunding Licence Holders

Crowdfunding licence holders are subject to various obligations set out in applicable laws and regulations. They are also expected to uphold standards for their conduct and internal operations, as outlined in regulatory guidance or accepted industry practices.

We can help you address these obligations and expectations through comprehensive support in the different areas. The list below is not exhaustive:

Crowdfunding Licence and Regulatory Compliance Obligations

• Compliance Management Systems: We can help you establish effective compliance programs, compliance monitoring plans, controls testing methodologies, compliance calendars and more.
• Risk Management Frameworks: We can help you develop comprehensive risk management frameworks to fulfil regulated crowdfunding platforms’ obligations for identifying, assessing, and mitigating operational, regulatory, strategic, financial and other types of risks.
• Policy and Procedure Development: We can help you draft and implement policies and procedures aligned with the crowdfunding platforms' licensing requirements.
• Compliance Monitoring Plans: We can oversee the execution of your CMPs, covering ongoing monitoring of your compliance obligations under the crowdfunding licensing regime.
• Internal Control Testing and Compliance Assurance: We can conduct internal reviews and audits of your controls to test their effectiveness and compliance with the applicable regulatory standards.
• Capital Adequacy Requirements: We can help you implement controls to comply with capital adequacy requirements, helping your businesses meet regulated crowdfunding platforms' obligations for maintaining required financial resources.
• Financial Auditing Standards: We can assist in establishing procedures to help you comply with the audit and assurance requirements under the crowdfunding licensing regime.
• Digital Payment Token Services: We can assist in developing controls to comply with regulations for digital payment tokens, cryptocurrencies, and digital assets, including obligations under the crowdfunding licensing regime and AML/CFT requirements for transaction monitoring and reporting.
• Investor Classification and Eligibility Controls: We can help you implement processes to assess investor eligibility and classification (e.g. retail vs wholesale/sophisticated), in line with jurisdictional crowdfunding limits, onboarding obligations, and investment caps.
• Offer Document and Disclosure Controls: We can help you implement controls for preparing and issuing offer documents or pitch materials, including jurisdiction-specific disclosure requirements under relevant crowdfunding or securities legislation.

 

Crowdfunding Licence and Operational Oversight Obligations

• Oversight of Outsourcing: We can establish a set of effective controls to comply with crowdfunding platforms' licensing obligations for overseeing outsourced services, also covering related obligations under AML/CFT compliance, ISO requirements, and more.
• Structures for Governance: We can help you establish effective governance structures to comply with regulated crowdfunding platforms' obligations and develop an effective approach to overseeing your risk exposure and compliance status across different functions of your business.
• Senior Management Accountability: We can help you comply with regulated crowdfunding platforms’ obligations for senior management and key staff conduct and competence.
• Maintaining Operational Resilience: We assist in developing continuity plans to meet regulated crowdfunding platforms’ obligations for operational resilience, helping critical business services withstand disruptions.
• Managing Technology Risks: We provide guidance on technology risk management obligations under the crowdfunding licensing regime.
• Platform Access and Due Diligence on Issuers: We can help you develop onboarding, due diligence, and monitoring controls for businesses or issuers raising funds through your platform, including AML/CFT obligations, background checks, and suitability assessments.

 

Crowdfunding Licence and Market Integrity/Transparency Requirements

• Standards for Market Conduct: We can help you implement controls for regulated crowdfunding platforms’ obligations to maintain fair and transparent market conduct, including preventing manipulation and insider trading.
• Principles for Fair Treatment: We can help you implement controls to comply with expectations that cover adherence to principles of fair treatment and transparent communications with clients.
• Standards for Conduct and Disclosure: We can help you comply with crowdfunding platforms' licensing standards for conduct and disclosure.
• Product Suitability and Governance: We can establish tailored controls to help licensed crowdfunding platforms comply with product suitability obligations.
• Protection of Client Assets: Where escrow is outsourced or not in scope, we can help you comply with crowdfunding platforms' licensing obligations to protect and segregate client assets.
• Resolution of Disputes: We can help you establish effective mechanisms for dispute resolution and complaints management, particularly for retail clients.
• Advertising and Communications Oversight: We can help you develop controls for your marketing and promotional materials to ensure compliance with restrictions on advertising crowdfunding offers, including social media monitoring and fair representation of investment risks.

 

Crowdfunding Licence and Resource Management Obligations

We can help you comply with the following requirements of the crowdfunding licensing regime:

• Adequacy of Resources: Covering financial, technological, human and other resources.
• Competence of Professionals: Covering key personnel, their necessary skills, knowledge, and professional competence.
• Our focus areas include:
• Assessment and Gap Analysis: We can help you evaluate the adequacy of your financial, technological, and human resources against the requirements of the licensing regime.
• Resource Allocation Plans: We can help you develop strategies to optimise resource allocation, covering sufficient capacity for compliance, trading, operations, banking, customer support and other functions and departments.
• Technological Solutions: We can recommend and implement RegTech tools to streamline compliance processes, such as transaction monitoring, reporting, and audit trails.
• Key Personnel Assessment: We can help you assess the skills, qualifications, and experience of key personnel to identify areas for improvement.
• Training and Development Programs: We can design and deliver targeted compliance training programs to upskill personnel in compliance, risk management, and crowdfunding regulations.
• Staff Vetting and rescreening: We can help you develop a framework for vetting and rescreening staff in line with the requirements of the licensing regime, AML/CFT laws, and other applicable regulations, with checks calibrated to the level of risk and responsibility associated with each role.
• Compliance Monitoring: We can help develop controls to monitor representatives' adherence to conduct and disclosure obligations.
• Ongoing Training: We can help you create a framework to support continuous education for advisors and representatives on licensing obligations, market integrity, and client interaction standards.
• Regulator Liaison: We can act as an intermediary with regulators to address queries and help you demonstrate compliance with resourcing obligations.
• Investment Cap and Transaction Limits Controls: We can help you implement automated and manual controls to monitor investor contribution limits, deal caps, and maximum investment thresholds required by the licensing regime

 

Crowdfunding Licence and Reporting

• Regulatory Reporting: We can help you prepare and submit periodic and ad-hoc reports covering:
  • Crowdfunding platforms' licensing obligations.
  • Crowdfunding platforms’ AML/CFT obligations (SMRs, STRs, SARs, cross-border transaction reports, cash transaction reports, and other reporting obligations)
  • Regulated crowdfunding platforms' obligations under financial market conduct regulations
• Compliance Documentation: We can help you develop and maintain the necessary documentation to meet record-keeping obligations under various laws and regulations.
• Audit Readiness: We can prepare you for audits and reviews to demonstrate compliance with regulatory requirements, provisions of the crowdfunding licensing regime, applicable operational standards, and more.