The PDF available for download above will list down the following:
- Set up requirements of operating a Private Financing Platform.
- Stages and Process.
- Cost
The information contained in this document is for information purposes only and should not be construed as legal advice. Moreover, the details are subject to change once we understand what your structure and investments entail. The requirements and costs mentioned may change at the discretion of the Financial Service Regulatory Authority (“FSRA”) and the Registrar of Companies (the “ROC”).
Structure of Company:
Private Company Limited by Shares.
Regulatory Status:
Regulated by the Financial Service Regulatory Authority (the “FSRA”) as a category 4 to operate a Private Financing Platform.
Definition:
A Private Financing Platform (PFP) allows:
- Introduction of private lenders to private borrowers;
- Introduction of private investors to private issuers (of e.g. shares);
- Introduction of private trade finance lenders to private trading companies; and
- Facilitation of the above mentioned activities via e.g. intermediary investment vehicle etc.
The payments for the transactions concluded on a PFP can be processed by the PFP if its Operator is allowed to hold Client Money.
A PFP is an online (electronic) platform that allows private companies, such as start ups and small and medium enterprises (“SMEs”) from early to pre IPO stage, to source financing from private and institutional investors to launch and scale their businesses.
PFPs may include equity funding, private placement and invoice financing platforms that leverage data and technology to unlock new ways of raising money for small businesses from professional investors such as high net worth individuals, private equity, venture capital, family offices, accelerators/incubators and angel investors.
Only corporate bodies (and not individuals) are allowed to seek financing through PFP The Operator of a PFP provides the following:
- Information about the companies seeking funding (as a result of due diligence carried by the Operator);
- Follow up on repayments and facilitation of repayments from those companies to investors/lenders (but not being a collector);
- Structuring investments via an SPV to facilitate the transaction; and
- If allowed to hold Client Money, processing payments from the investors/lenders to companies and later repayment back.
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