Quote by ACfA
“The African Crowdfunding Association (ACfA) is an industry association for crowdfunding on the continent.
ACfA believes that the sustainable growth of crowdfunding in Africa is dependent on the appropriate regulation of the sector, and works with several regulators on the continent to implement the same.
In South Africa, the Financial Services Conduct Authority (FSCA), authorised Uprise Africa as a Financial Services Provider under the FAIS (Financial Advisory and Intermediary Services) Act in order to be able to conduct equity crowdfunding. ACfA members’ compliance with the requirements under the FAIS Act takes precedence over any compliance requirements under ACfA’s Charter of Good Conduct (COGC). As such, ACfA’s scope is limited to initiating and undertaking actions in respect of members’ compliance with the COGC.
Uprise Africa is a member of ACfA. ACfA conducted a review of Uprise Africa’s compliance with our COGC on 13 May, following an article by Ventureburn on 8 May regarding the equity crowdfunding campaign of Intergreatme (IGM). The process included members of the board, executive management, and compliance teams of Uprise Africa. The review resulted in recommendations for Uprise Africa in the areas of risk management and communication. In all other respects, ACfA is satisfied that Uprise Africa remains compliant with our COGC.”
Uprise.Africa is an online marketing tool that creates a platform for business owners and entrepreneurs to market-test business plans and sells equity to potential investors. Uprise.Africa prides itself on its secure online platform adhering to all required regulations and compliance parameters during the investment process and the roles and responsibilities between the investors are strictly governed by contractual agreements.
In the financial world, the use of online platforms to raise funds is a relatively new and unchartered territory, which can result in potential financial risks for investors. Uprise.Africa is aware of these risks and consistently updates its processes in order to effectively report and address any potential fraudulent behaviour in the network, as well as working with partners on best practices around authentication and fraud monitoring.
The R25million that was pledged to Intergreatme, through its own acquired potential investor, is an example of how certain parties try and exploit these inherent risks within the Crowdfunding arena.
Uprise.Africa strictly adheres to the regulated steps to be followed during crowdfunding investment campaigns, which includes: (1) a pledge being received, (2) the pledgor and the funds must clear due diligence and compliance checks, which in this case was conducted by Uprise.Africa and (3) if cleared the pledgor signs a subscription agreement and only then becomes an investor, which did not take place in the case of the R25mill pledge.