UK Equity Crowdfunding Site CrowdBnk Welcomes FCA’s Response.
Commenting on the response to the consultation on the regulatory approach to crowdfunding published by the Financial Conduct Authority (FCA) , Ayan Mitra, CEO of CrowdBnk, an equity crowdfunding platform, stated;
“We are pleased to see that the FCA has kept the ‘crowd’ in crowdfunding, by allowing anyone to invest up to 10 per cent of their available assets. This ensures crowdfunding remains available to all types of investor and , on the whole, we think the approach strikes the right balance between consumer protection and access to investment opportunities.”
“In an era where even established SMEs with strong track records are struggling to obtain funding from banks, crowdfunding provides an important alternative route to finance and makes it easier for all suitable investors to find and invest in quality businesses.”
“At CrowdBnk, we have complied with the FCA’s measures for equity investments since our launch a year ago including Investment Caps for all appropriate investors, which we feel is the correct way to manage consumer risk. However, although the response will effect a significant step forward for the crowdfunding industry as a whole, we feel that the Regulator could have gone further in terms of standardised disclosure and due diligence on investee companies. This would enable investors to better compare information and make judgments based on their own personal circumstances, rather than ‘following’ the crowd into popular investments.”