FCA publishes policy statement on crowdfunding regulation
By Sam Robinson and John Finnemore
On 6 March 2014, the Financial Conduct Authority (FCA) published Policy Statement 14/4 outlining the FCA’s final rules on the regulation of crowdfunding. We previously highlighted that this policy statement had been published and summarised the new rules on the Nabarro website. This article now provides further detail relating to the new rules in this area.
In October last year, the FCA published Consultation Paper 13/3, which outlined the FCA’s proposals to regulate loan-based and investment-based crowdfunding. Having received 98 responses to the consultation paper, the FCA has published the recent policy statement confirming how it now proposes to regulate the crowdfunding industry.
The new rules apply predominantly to firms that operate, or plan to operate: peer-to-peer lending platforms or peer-to-business lending platforms (on which consumers are able to lend money to individuals or businesses) (loan-based crowdfunding); or investment-based platforms (on which consumers purchase shares or debt securities in new or established business, generally structured as UK private limited companies) (investment-based crowdfunding)…
Click on the link below to read the rest of the Nabarro briefing.
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