This consultation paper (CP) is one of a series of consultation papers that will determine our approach to the regulation of consumer credit activities – this will include responsibility for regulating ‘loan-based crowdfunding’, also known as peer-to-peer lending platforms. The CP also includes proposals affecting the way we regulate investment-based crowdfunding.
Crowdfunding is a way in which people, organisations and businesses (including business start-ups) can raise money through online portals (crowdfunding platforms) to finance or re-finance their activities and enterprises. Some crowdfunding is unregulated, but if it involves a regulated activity, without an exemption applying, then the FCA is responsible for its regulation.
On 1 April 2014, we are taking over the regulation of the consumer credit market from the Office of Fair Trading (OFT). Our other consumer credit consultation papers will consult on appropriate measures to protect borrowers. In this paper we propose regulations designed to protect investors using loan-based crowdfunding platforms. We are also consulting on our approach to protect investors on investment-based crowdfunding platforms.
The paper will be relevant to:
Please send us your comments by 19 December 2013 via the online form.
We will consider your feedback and publish our rules in a Policy Statement in February or March 2014.
For more information:
Copyright © 2013 FCA. All Rights Reserved.