Crowdfunding and authorisation

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

We regulate

We don't 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.

  • 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 offers guidance on the scope of the Payment Services Regulations 2017.

Detailed information

Investment-based crowdfunding: see our information for retail intermediaries and authorisation