FCA consults on rules for lending platforms

Today the Financial Conduct Authority (FCA) published a Call for input to the post-implementation review of the FCA’s crowdfunding rules. In this paper the regulator sets out some of the recent developments across the crowdfunding sector and a number of concerns that the FCA has identified in response. The FCA wants to gather feedback from all interested parties relating to the loan-based crowdfunding sector.


In 2014, new rules came into force for the regulation of crowdfunding platforms operated by firms authorised by the FCA.  The regulator committed to carry out a full post-implementation review of the crowdfunding market and regulatory framework in 2016 to identify whether further changes are required.

In it the FCA summarises some of the market developments it has seen recently and some of the current concerns to help structure the conversation.

Over the coming months the FCA will also work with firms and carry out additional research into the market to inform the review.

This paper will be of interest to:

  • consumers and consumer organisations with an interest in the investments offered on crowdfunding platforms, and similar investment offers such as the marketing of mini-bonds
  • firms that operate or plan to operate peer-to-peer (P2P) lending platforms or peer-to-business (P2B) lending platforms (which we refer to as loan-based crowdfunding platforms in this paper) on which consumers can invest in loan agreements (which we refer to as P2P agreements)
  • firms that operate or plan to operate investment-based crowdfunding platforms on which consumers can buy investments, such as equity or debt securities securities (such as bonds or debentures) that are not listed or traded on a recognised exchange, or units in an unregulated collective investment scheme
  • firms that market non-readily realisable equity or debt securities to retail clients outside of online investment crowdfunding platforms
  • firms that compete for business with P2P lenders
  • consumers and businesses that have entered into, or plan to enter into, P2P agreements as borrowers.

The FCA statement is available here and comments are due by 8 September 2016

Lavanya Rathnam

Lavanya Rathnam is an experienced technology, finance, and compliance writer. She combines her keen understanding of regulatory frameworks and industry best practices with exemplary writing skills to communicate complex concepts of Governance, Risk, and Compliance (GRC) in clear and accessible language. Lavanya specializes in creating informative and engaging content that educates and empowers readers to make informed decisions. She also works with different companies in the Web 3.0, blockchain, fintech, and EV industries to assess their products’ compliance with evolving regulations and standards.

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