COB 1.2.2(c) applies COB 8 (Client Assets) to Authorised Crowdfunding Platforms, but the reading rule does not reach the scope of COB 8, which is defined by Investment Business

COB 1.2.2(c) disapplies COB for an Authorised Crowdfunding Platform except COB 3, COB 4, COB 7, "COB 8 (Client Assets)" and COB Schedule 2, and the reading rule that follows provides that in these chapters "Regulated Activities" shall be read as "Market Activities". COB 8 does not use that term to set its scope: it applies to a firm that holds Money for a Client "in the course of, or in connection with, the carrying on of Investment Business or Provides Money Services" (COB 8.1.2(a), 8.1.4), and COB 8.2.1 defines Client Money by Investment Business. Operating a Loan or Investment Crowdfunding Platform is a Market Activity and is not in the Glossary definition of Investment Business. Read literally, the Client Money Rules do not attach to money a platform holds for lenders or investors, for example before the target funding amount is reached (AMI 7.3.22) or when it collects repayments for lenders (AMI 7.4.2), unless the platform also holds a licence for Investment Business or Money Services (AMI 7.2.1). AMI 2.9.1 requires satisfactory arrangements for safeguarding users' assets, and AMI 7.3.4(1)(n) requires disclosure of the "arrangements and safeguards for Client Assets held or controlled by an Authorised Crowdfunding Platform", but these rules do not set out the client money rules or the distribution rules in COB 8.2.16. Example: lenders transfer 900,000 USD to a platform for a loan with a target of 1,000,000 USD; the platform fails before the target is reached; whether the 900,000 USD is Client Money protected by COB 8.2.16 depends on whether COB 8 is read as reaching Market Activities.

Proposed correction

Please add to the reading rules for COB 1.2.2(c) that references in COB 8 to "Investment Business" are read as references to the Market Activities of an Authorised Crowdfunding Platform, or otherwise state how COB 8 applies to money held by such platforms.

Jurisdiction

Kazakhstan — AIFC

Act

AIFC Conduct of Business Rules (COB), V17

Place

COB 1.2.2(c)

Record

Discrepancy

Class

Text of the act

Where it arose

The text of the act

Arxo's conclusion

Confirmed

Official text

Unchanged at last check

Last checked

2026-10-25

Evidence

Contradiction within the text. Quotations are verbatim from the official material; translations are ours and marked.

an Authorised Crowdfunding Platform, except for COB 3 (Communications with Clients and Financial Promotions), COB 4 (Key Information and Client Agreement), COB 7 (Conflicts of Interest), COB 8 (Client Assets)

"Regulated Activities" shall be read as if it were a reference to "Market Activities"

receives Money from, or holds or controls Money for or on behalf of, a Client in the course of, or in connection with, the carrying on of Investment Business or Provides Money Services in or from the AIFC

carrying on of Investment Business in or from the AIFC is Client Money, except Money which is

Market Activity of Operating a Loan Crowdfunding Platform

(k) Operating an Exchange, but not including Digital Asset Business.

all loan proceeds are only provided to the Borrower or offering proceeds are only provided to the Issuer when the aggregate capital raised from all lenders or Investors is equal to or greater than the target funding amount

A Loan Crowdfunding Platform must have in place arrangements to administer the collection of amounts due and payable under a Permitted Loan.

arrangements and safeguards for Client Assets held or controlled by an Authorised Crowdfunding Platform

where its facilities include making provision for the safeguarding and administration of assets belonging to users of those facilities

An Authorised Crowdfunding Platform may apply to the AFSA to carry on one or more of the following Regulated and Market Activities

if any AFSA Rules relating to the holding by Investment Intermediaries of Money belonging to third parties apply in relation to the Company

How to check it without Arxo's tools

1. Open Conduct of Business Rules_V17 (with amendments as of 7 December 2025, which commence on 13 January 2026) and find COB 1.2.2(c); COB 1.2.2, reading rule for (c)(b); COB 8.1.2(a); COB 8.2.1. Compare the text with the quotation above. A copy is kept in this register: ae99fece8c925210-cob_v17_13.01.2026-1.pdf (SHA-256 ae99fece8c92521046670bbcf56bf4176715e22ece4779e4ba8b461a631793c6, copy of the official file).
2. Open AIFC Glossary (GLO), V23 and find Glossary, «Authorised Crowdfunding Platform»; Glossary, «Investment Business», p.26 (the exclusion follows the whole list (a)–(k)). Compare the text with the quotation above. A copy is kept in this register: 041617346ad87a9f-glo-v23.pdf (SHA-256 041617346ad87a9ff3634eff95b3b92f65ee5f4965298a2c1137b8b9a8374b45, copy of the official file).
3. Open Authorised Market Institution Rules V11., (with amendments as of 7 December 2025, which commence on 1 January 2026) and find AMI 7.3.22(1); AMI 7.4.2(1); AMI 7.3.4(1)(n); AMI 2.9.1(1); AMI 7.2.1. Compare the text with the quotation above. A copy is kept in this register: 8f6c60e7a2ea9f1b-ami_v11_01.01.2026-1.pdf (SHA-256 8f6c60e7a2ea9f1b70a5fc63cf33f8f9f4e5192e4f54dec80e109c914651b198, copy of the official file).
4. Open V3_Insolvency Rules with amendments as of 15 December 2024, commence on 1 January 2025 and find Insolvency Rules, Schedule 4, «Excluded Property»(b). Compare the text with the quotation above. A copy is kept in this register: 782ee782f649d901-ir_v3_gr0008_01.01.2025.pdf (SHA-256 782ee782f649d9016e95f69bd3c2128b4b4c7fa087f47fa6f8f053feefec0f8e, copy of the official file).
5. The finding holds if the quoted passages read as shown and the comparison gives the result stated at the top of this page. If it does not, write to us with the record ID.

How this finding was made

AI agents read the official texts, turned the provisions concerned into executable rules and ran the comparison; they also drafted this record. A person at Arxo checked the finding and approved the report before it was sent (2026-10-27).

Responsible institutions

• Astana Financial Services Authority (AFSA) — author of the AIFC Rules

Reported to

Responses

No response recorded.

Documents and reproduction

• Conduct of Business Rules_V17 (with amendments as of 7 December 2025, which commence on 13 January 2026)
• AIFC Glossary (GLO), V23
• Authorised Market Institution Rules V11., (with amendments as of 7 December 2025, which commence on 1 January 2026)
• V3_Insolvency Rules with amendments as of 15 December 2024, commence on 1 January 2025

History

1. 2026-10-25Confirmed by Arxo
2. 2026-10-27Entered in the register
3. 2026-10-27Reported to Astana Financial Services Authority (AFSA) (e-mail)

Cite this record

Arxo Law, Arxo Findings Register, ARXO-2026-0105, https://arxo.io/findings/ARXO-2026-0105/ (status as of 2026-10-25). Data: ARXO-2026-0105.json.