The Financial Conduct Authority (FCA), the United Kingdom regulatory agency which has oversight on crowdfunding, has released their comments on regulating the crowdfunding industry. This includes both debt based and equity based crowdfunding.
On 1 April 2014, the FCA is taking over the regulation of the consumer credit market from the Office of Fair Trading (OFT). Their other consumer credit consultation papers will consult on appropriate measures to protect borrowers. In this paper they propose regulations designed to protect investors using loan-based crowdfunding platforms. They are also consulting on our approach to protect investors on investment-based crowdfunding platforms.
The consultation paper is reproduced below: