Crowdfunding and authorisation

Some types of crowdfunding need our authorisation and others don’t. Find out the differences here.

We regulate:

  • loan-based crowdfunding: also known as ‘peer-to-peer lending’, this is where consumers lend money in return for interest payments and a repayment of capital over time
  • investment-based crowdfunding: consumers invest directly or indirectly in new or established businesses by buying investments such as shares or debentures

These are regulated activities under the Financial Services and Markets Act 2000.

For investment-based crowdfunding, see our information for retail investment firms.

We don't regulate:

  • donation-based crowdfunding: people give money to enterprises or organisations they want to support
  • pre-payment or rewards-based crowdfunding: people give money in return for a reward, service or product (such as concert tickets, an innovative product, or a computer game)

See Chapter 15 of our perimeter guidance manual, which explains the scope of the Payment Services Regulations 2017.

Page updates

29/04/2021: Information changed Rearranged the page without amending the content