The FCA on 3rd Februay has published its review of the regulatory regime for crowdfunding and the promotion of non-readily realisable securities by other media.
The review focuses on the kinds of crowdfunding activity that is regulated by the FCA:
- Loan-based crowdfunding crowdfunding platforms,2 on which people lend money to individuals or businesses in the hope of a financial return in the form of interest payments and a repayment of capital over time (this excludes some business-to-business loans); and
- Investment-based crowdfunding platforms, on which people invest in unlisted shares or debt securities issued by businesses.
The report provides details to both areas, changes to the market, authorisation of firms and its process, supervision by the FCA and international action.
The full report can be found here.