UKCFA Calls For Feedback On FCA Crowdfunding Regulation

The Financial Conduct Authority (FCA), the United Kingdom’s regulatory entity which has oversight over the booming crowdfunding industry, released a consultation paper (CP) this past October reviewing the new, innovative industry. The CP is one of a series of consultation papers that will determine their approach to the regulation of ‘loan-based crowdfunding’, also known as peer-to-peer lending platforms, and equity based crowdfunding.

The United Kingdom Crowdfunding Assocation (UKCFA) has posed the question, “Does the FCA’s consultation on crowdfunding and similar activities represent appropriate and proportionate regulation?”. In a call for input the UKCFA has placed the question on PlaceSpeak, an online, crowdsourced, public forum which empowers people to provide feedback on important issues and public consultations. The request for responses has a deadline of December 19, 2013.

Some sectors of the industry have been vocal in their opinion that proposed regulations may go too far and thus diminish the potential of crowdfunding to improve capital formation for small business and thus benefit the overall economy. The United Kingdom has been a global leader in crowdfunding and in a very short period of time the industry has grown dramatically, bringing efficient allocation of capital to small businesses and creating new investment opportunities to an audience previously blocked from this type of asset class.

From the PlaceSpeak page:

Does the FCA’s consultation on crowdfunding and similar activities represent appropriate and proportionate regulation? Have your say.

How can you help?

There are several ways that you can contribute your ideas and opinions to this consultation. Help inform and influence the outcome:

Share the word with friends and family

Participate in discussions

The Financial Conduct Authority has recently issued a consultation paper on the future regulation of crowdfunding (equity and debt), peer to peer lending, and the marketing of other direct, unlisted, unadvised, equity and debt based securities.

Responses are solicited from any interested party, by December 19, 2013.

The UK Crowdfunding Association has set up this placespeak topic to encourage as many people as possible to input their views, as easily as possible.

There is also an associated polls asking if the FCA proposal keeps the crowd in crowdfunding.

Comments may be directly posted on the FCA site. The form to post comments on the consultation paper on crowdfunding may be completed here.

Interested individuals or organizations may also email their comments to cp13-13@fca.org.uk. Yes you may even use regular mail by writing directly to the FCA at the address below:

Susan Cooper and Jason PopePolicy,

Risk and Research Division

Financial Conduct Authority

25 North Colonnade

Canary Wharf

London E14 5HS