PS14/4: The FCA’s regulatory approach to crowdfunding over the internet, and the promotion of non-readily realisable securities by other media

Published: 06/03/2014   Last Modified : 09/04/2014

In this policy statement (PS) we summarise and give response feedback to CP13/13 - The FCA’s regulatory approach to crowdfunding (and similar activities). We also publish rules that will come into force on 1 April 2014.

Why are we publishing this policy statement?

In this paper we outline the new regime that will apply to firms operating loan-based crowdfunding platforms (including peer-to-peer lending platforms).  
We also update the regime applying to firms that either operate investment-based crowdfunding platforms or carry on similar regulated activities.

Policy statement PS14/4

Who should read this paper?

This policy statement will interest:

  • consumers and consumer organisations with an interest in the investments offered on crowdfunding platforms
  • firms that operate peer-to-peer or peer-to-business lending platforms
  • firms that operate investment-based crowdfunding platforms
  • firms that use offline media to communicate direct offer financial promotions for non-readily realisable equity or debt securities

Next steps

The new and amended rules come into force on 1 April 2014, subject to certain transitional arrangements.  We plan to review the crowdfunding market and regulatory framework in 2016 to identify whether further changes are required.

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