BEGINNING OF THE ACTIVITY OF THE PLATFORMS FOR PARTICIPATORY FINANCING (CROWDFUNDING)

The National Securities Market Commission is the entity that will authorize the platforms for participatory financing, following a mandatory and binding report by the Bank of Spain. The requirements which have to be met in order to perform this activity are as follows:

1.- The sole social object for carrying out the activities of the platforms for participatory financing;

2.- Be in possession of a business address in national territory or another state which is member of the EU;

3.- Constituted for an indefinite period;

4.-Social Capital fully paid in cash;

5.-Recognized business or professional reputation of the administrators of the platform and possession of adequate knowledge and experience in necessary materials for the exercise of their functions;

6.- Having good administrative and accountant skills or disposal of adequate internal control procedures;

7.- Be in a sufficient means to ensure the security, confidentiality, reliability and services which are provided electronically;

8.- Have an internal code of conduct;

9.- Provide mechanisms to ensure that in case of cessation of the activity, the services for participatory financing continue being provided which were committed;

10.- And sufficient financial means.

The application for authorization and registration of the Platforms for participatory financing must be accompanied by draft statutes and negative registration certificate; the services which will be executed by the assistants have to be indicated; accompanied by a description of the administrative and accounting organization; indicating the shares in the share capital; the ratio of administrators; internal code of conduct; description of the procedures and means for filing complaints and claims; repute statement duly signed by each of the managers and CEOs; and description of procedures and systems which will be forwarded to the developer funds from investors, and the investors will receive a return on the invested capital.

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