Crowdfunders: don’t be an April Fool

Back in October 2013, Gateley reported on proposals put forward by both the Financial Conduct Authority (FCA) and the European Commission for regulating the crowdfunding industry. The FCA has recently issued a policy statement confirming that many of the proposals from its original consultation paper will now be implemented with effect from 1 April 2014. Anyone involved in the crowdfunding industry risks looking foolish if they fail to comply with the new proposals by that date.

Loan-based crowdfunding (often known as P2P lending) refers to firms operating peer-to-peer or peer-to-business lending platforms. The FCA Principles contained in the FCA Handbook will be extended to apply to firms running P2P lending platforms. As a result, such firms will be subject to conduct-of-business rules, including provisions in relation to disclosure and promotions, client money protection rules and dispute resolution rules.

Firms will also be subject to minimum capital requirements, but the FCA has changed the element of this requirement that will be calculated as a percentage of funds loaned, by slightly reducing the percentages and introducing an additional layer for very large firms…

Click on the link below to read the rest of the Gateley briefing.

Sign in or Register to continue reading this article

Sign in


It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer


Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.


Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.


Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Briefings from Gateley

  • Best price? Strickland v Blemain Finance Ltd

    A heritable creditor is required to ‘take all reasonable steps to secure that the price at which all or any of the subjects are sold is the best that can be reasonably obtained’.

  • Will you get caught by the DPA?

    If defects appear in a building after completion, the developer or contractor may be liable to the owners of the building, in contract or negligence, for the cost of remedying that work.

View more briefings from Gateley

Analysis from The Lawyer


111 Edmund Street
B3 2HJ

Turnover (£m): 71.70
No. of lawyers: 406