Legal and Regulatory Questions Regarding SMARTMONEYMATCH.com

This answer is for general guidance only. It does not constitute advice.

Do products and services included on the platform require registration or regulatory approval?

From the nature of the platform its reverse solicitation, as the potential investor has to give in the criteria for his required investments/services and has to run a search for products/services, where he will see the corresponding results. The platform can adapt though according to the given registration or regulatory approval according to each jurisdiction.
The other way would be that he creates under “My Request for Proposals” a new RFP and potential interested investment service providers – who filled in the corresponding “My RFP Interests” – will receive it in their inbox and can choose to answer accordingly.

 

What steps does the platform undertake to ensure that is not deemed to be marketing the funds?


As the investor has to actively search for a product according to his specified criteria, or has to create under “My Request for Proposals” a new RFP, no investments will be shown to the investor without his explicit request.

 

How do you ensure that information provided or made available by you regarding a fund does not eliminate the ability of that fund to rely on reverse enquiry?

From the nature of the platform its reverse solicitation, as the potential investor has to give in the criteria for his required investments/services and has to run a search for products/services, where he will see the corresponding results. The platform can adapt though according to the given registration or regulatory approval according to each jurisdiction.
The other way would be that he creates under “My Request for Proposals” a new RFP and potential interested investment service providers – who filled in the corresponding “My RFP Interests” – will receive it in their inbox and can choose to answer accordingly.

   

What are the qualification requirements (if any) that investors must adhere to in order to register for access/subscribe to your service or receive information from you regarding a fund?


a)    An investor first has to register and give in his domicile. According to his domicile he has to confirm – according to the corresponding information – that he is a qualified investor (if this is not the case, he will see only investments that the asset manager stated as possible for public distribution within his domicile)
b)    He has to accept the Terms & Conditions and the Privacy Policy of the Platform.
c)    He has to search actively to get the information for an investment that corresponds to his requirements. Only then will he be able to see investments that:

  1. Fulfill his filter criteria
  2.  Are indicated for distribution according to the asset-manager to the respective domicile of the investor and his qualification (all other investments/services will be filtered out)

 

Do you, or do you have the ability to, restrict access to some or all information in respect of investors from specific jurisdictions?

Yes. For each single product offered, the investment managers – who upload the product – can state in which jurisdiction it is for retail investors, in which for qualified/accredited investors and in which investors can’t invest in this product.


Is your service restricted to "Professional investors", as defined in MiFID?


The asset manager can restrict his product to professional investors (qualified according to MiFID). The classification is the responsibility of the asset manager to classify his products correctly.


What representations and warranties regarding AIFMD, marketing and reverse solicitation do you obtain from users?


a)    An investor first has to register and give in his domicile. According to his domicile he has to confirm – according to the corresponding information – that he is a qualified investor (if this is not the case, he will see only investments that the asset manager stated as possible for public distribution within his domicile)
b)    He has to accept the Terms & Conditions and the Privacy Policy of the Platform.
c)    He has to search actively to get the information for an investment that corresponds to his requirements.

 

Can you provide any other information that would enable us to assess the extent to which providing information regarding our funds to you will not create any additional risks such as the ones described above from an AIFMD perspective?

see our explanation regarding AIFMD

As a summary: The platform is in it's nature reverse solicitation, as: 

a)    An investor first has to register and give in his domicile. According to his domicile he has to confirm – according to the corresponding information – that he is a qualified investor (if this is not the case, he will see only investments that the asset manager stated as possible for public distribution within his domicile)
b)    He has to accept the Terms & Conditions and the Privacy Policy of the Platform.
c)    He has to search actively to get the information for an investment that corresponds to his requirements. Only then will he be able to see investments that:

  1. Fulfill his filter criteria
  2.  Are indicated for distribution according to the asset-manager to the respective domicile of the investor and his qualification (all other investments/services will be filtered out)

Regarding AIFMD the following has to be considered:

There’s no trading on the platform. All interested investors need a further intermediary to get funds’ interests. So additionally the security provided by the platform means a potential investor needs to go to a broker or similar for acquiring your funds, where a further examination has to be carried out. 
The only risk you have on the platform is that someone may get the information by giving wrong information.