WP FINAL 221018 SPREADS F - Flipbook - Page 1
Smart Contracts
The process of crowdfunding is simple and has been in existence for a number of years. Tokenise will assist in
the shift towards tokenised securities and assets, whether a company issuing equity, a building, a fractional
ownership, a debt instrument or a royalty catalogue for music. For each of these assets, smart contracts will
automatically be created.
Initially, Tokenise will consider the following token issuances based on an enhanced ERC20 contract which
only allows addresses listed on the ‘Whitelist Contract’ to receive, hold and transfer tokens. The ERC20
contract will be fully backward compatible so that existing exchanges and wallet infrastructures will be able
to interact with it.
Smart contracts will be automatically created following a templated system. External lawyers will draw
up the initial terms, which can be templated and therefore replicated. If there is a deviation or change to
regulations or legislation in the future, external legal counsel will be sought to ensure that we are adhering
to the correct regulatory standards and that our issuing companies also follow this pathway. In all instances,
the token is accompanied by a smart contract, a self-executing smart contract, provided to govern the rules.
Compliance
The teams from both Kession and Complians have worked in and around heavily-regulated and complianceled industries. Ensuring the correct systems and controls are in place is of great importance to the upkeep of
the platform and is ingrained in our team.
By working both with in-house and external professionals, as well as with RegTech organisations, Tokenise
is able to manage its risks and govern the platform while also ensuring compliance of its investee businesses
through its bespoke RegTech system Complians.
Complians was built by compliance professionals to offer a Compliance as a Service (CaaS) model for our
regulated business through Kession. It has a secure web-based log on system for accessibility and ease of use.
The purpose of this system is to assist businesses in all aspects of regulatory compliance including:
• Regulatory Approvals – including financial promotions, Know Your Customer (KYC), sanctions
checks, personal account dealing and gifts and benefits.
• Books and Records – including fit and proper evaluations, a documentation library, client
categorisations and historical record keeping.
• Training & Development – including core training guides, presentations and testing mechanisms.
• Supervision – including upload of documentation, annual declaration and customer support.
• News – including news from FCA, SEC, FSC and FOS – allowing business to keep pace with the
latest updates.
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Currently Complians has been used by over 50 companies, including the Swiss Stock Exchange (SIX),
crowdfunding platforms, and private equity and VC companies, has been recognised in the industry by FS
Tech and the National Technology Awards.
Integrating Complians on the Tokenise platform will enable us to supervise and record the compliance functions
in businesses and seamlessly conduct full regulatory audits seamlessly. By fusing the permissions held by
Kession and the regulatory technology, we can assist regulated firms in the gathering and monitoring of data.
The Complians System
The Complians System was built to enable the compilation and recording of compliance books, records
and information, it also has jurisdictional applications across the UK and the US markets. This easy to use
application can be migrated to a DLT system where applicable. The immutable records could sit perfectly on
the blockchain and this software could see widespread adoption across the financial services sector, which
represents over 50,000 firms in the UK alone. Following a period of time, the Complians system could be
adapted to suit all markets and enable it to be a global resource for regulated firms.
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