New Legislation - Crowdfunding and Credit Funds

The Riffle

The DFSA has made changes to lending and investment limits (US$ 50k changed to US$ 100k) for Retail Clients, allowed investments through Credit Cards and allowed Fund Managers to manage External Credit funds, as long as they are QIFs.

The DFSA has made amendments to legislation, effective from August 1, 2024.

The changes include:

For CF Platforms:

1. Disclosure requirements for CF platforms to address app-based solutions.

2. Permission to make general ads outside the platform

3. Increase of investment limits for Retail Clients - from US$ 50k to US$ 100k, with a single investment limit of US$ 50k

4. Allowing investments through Credit Cards

5. Funding/Property Investment limit increased from US$ 5 million to US$ 10 million (per proposal)

For Credit Funds:

1. Fund Managers are now permitted to manage External Credit Funds, if they are QIFs.

2. New rules on risk warnings for such funds

For a deep dive, read our full dossier on the subject by clicking the link below.