FCA is consulting on rule changes for loan-based crowdfunding platforms, following its post-implementation review.
It has noted the market has developed, and models have become increasingly complex, since FCA’s last review of the sector. It has also noticed some poor practices developing. Now it wants to make changes to ensure:
- investors get clear and accurate information about investments and understand the risks involved;
- that investors’ remuneration is adequate for the risks they are taking;
- fair and transparent charges to investors;
- transparent and robust systems for assessing the risk, value and price of loans;
- good governance and orderly business practices; and
- consistency in marketing restrictions – FCA proposes to extend the restrictions that currently apply to investment-based platforms also to cover loan-based ones.
FCA is requesting comments by 27 October and wants to publish a policy statement by the end of the year.