In 2016 the we launched a post-implementation review (PIR) of our regulation of the crowdfunding sector (which covers investment-based and loan-based crowdfunding). This paper summarises our findings, and consults on proposed new rules and guidance for loan-based crowdfunding platforms (also known as ‘peer-to-peer’ platforms).
The changes we are proposing are designed to address the ways in which the loan-based crowdfunding model has developed since we introduced the loan-based crowdfunding rules in 2014. We have observed a variety of loan-based crowdfunding business models, some of which have become increasingly complex.
Based on our findings we invite responses to a number of proposals to change the rules for loan-based firms which cover:
In December 2016, we also committed to addressing a potential gap in protections for customers buying a mortgage or taking out a home finance product through loan-based crowdfunding. We are now proposing to apply rules which would normally apply to home finance providers, to P2P platforms where at least one of the investors is not an authorised home finance provider.
We are not consulting on changes to the rules for investment-based crowdfunding platforms. This is because detailed regulatory obligations already exist to manage the risk of investment business. However, the document also provides an overview of our findings in this sector, and some clarification of certain existing rules.
Who this applies to
This CP will be of particular interest to:
Please send us your comments by 27 October 2018.
You can also:
We are asking for responses to this consultation by 27 October 2018 before aiming to publish rules in a Policy Statement in Q2 2019.