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: 03/02/2015

This policy statement summarises and gives response feedback to CP13/13 - The FCA’s regulatory approach to crowdfunding (and similar activities). We also publish rules that came 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 came into force on 1 April 2014, subject to certain transitional arrangements.

Review

A review of the regulatory regime for crowdfunding and the promotion of non-readily realisable securities by other media

In this paper we look at the implementation of the new rules so far. We will conduct a full post-implementation review of the rules in 2016.

Interim data gathering for firms running peer-to-peer platforms

Our rules require firms operating peer-to-peer platforms under interim permission to report certain information to us on a regular basis:

The completed forms, or an email confirming a Nil Return, should be sent to datacollection2@fca.org.uk.

If you have any questions about this data collection, please contact us.

Further information

For more information:

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