UK Crowdfunding Industry Comments on FCA’s Call for Input on Rules

As announced earlier today, the Financial Conduct Authority (FCA) has requested feedback from interested parties regarding the regulatory environment for debt and investment-based crowdfunding. The process is part of an anticipated periodic review of this new form of finance. Original rules were enacted in 2014.

Goncalo de VasconcelosSyndicateRoom CEO and co-founder Goncalo de Vasconcelos, commented on the FCA request;

“SyndicateRoom has always pushed for appropriate regulation in crowdfunding and welcomed the 2014 crowdfunding rules as essential to build the industry’ credibility. In fact, SyndicateRoom is the only crowdfunding platform in the UK that has been authorised by the FCA to go one step further and allow the crowd to invest in London Stock Exchange IPOs and private placings, showing our strong commitment to complying with the most stringent regulations applicable to SyndicateRoom.”

Rhydian LewisRhydian Lewis, CEO and co-founder of marketplace lending platform RateSetter, stated;

“We welcome the FCA’s announcement.  This review is a fantastic opportunity to look at the issues that really matter and put beyond doubt the case for opening up direct access to investment returns from the asset class of loans.  Peer-to-peer investing is becoming very popular and it makes sense for the FCA to ensure it is appropriately regulated.  We look forward to continuing our active and positive engagement with the FCA during the review process.”

Kevin CaleyKevin Caley, founder and Chairman of P2P lender ThinCats, stated;

“We’ve been expecting this review for some time, and wholeheartedly welcome the opportunity to establish an agreed code of practice. The crowdfunding sector is relatively new so it’s important that people are given clear benchmarks and guidance from which to make financial decisions. I hope the report is able to address this, while debunking some of the common misunderstandings around the industry.”

Jaidev-JanardanaZopa CEO Jaidev Janardana posted on the platform blog;

“When the FCA launched crowdfunding regulation (under which Zopa is regulated) in 2014, they always planned to conduct a post implementation review in 2016 to ensure that the regulation was relevant for an industry with exponential growth. At Zopa, we welcome regulation and this review. We are committed to ensuring that consumer needs are placed at the forefront of all decisions and that the risks of peer-to-peer lending are outlined clearly and explicitly by all providers of peer-to-peer services.”

Christine FarnishCrowdfund Insider previously published a statement forwarded by the UK P2PFA. Christine Farnish, Chair of the P2PFA, asserted;

“As an Association, we have always embraced an appropriate level of regulation, and we look forward to contributing authoritatively to the debate’.”

 

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