FCA

FCA RULES FOR NON-READILY REALISABLE SECURITIES AND IMPACT ON CROWDFUNDING

FCA RULES FOR NON-READILY REALISABLE SECURITIES AND IMPACT ON CROWDFUNDING

BY Dr Avtar Sehra Quantitative Analytics and Risk Management Director Introduction The FCA Consultation Paper (CP13/13) and the resulting Policy Statement (PS14/4) outline the FCA’s position on investment (equity/debt security) crowdfunding, and how this differs from loan crowdfunding (P2P/P2B). These papers highlight the significant risks investors face when investing in unlisted securities that are hard to value independently or sell on a secondary market. As a result it is required that firms offering such investments on crowdfunding platforms (or using other media) only promote these to certain types of retail investors (discussed below). Where no advice has been provided to retail clients it is also proposed to…

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Cambridge Launches Europe Wide Alternative Finance Benchmarking Survey

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CrowdFunding News Beat UK.  European Alternative Finance Benchmarking Survey by the University of Cambridge in partnership with EY.  Focusing on crowdfunding and peer-to-peer lending activities, this survey aims to collect aggregate-level data to measure the size and the growth of the alternative finance markets in Europe between 2012 and 2014.The European Alternative Finance Benchmarking Report will be published in January 2015 and distributed freely to participating platforms, government agencies, financial regulators, industrial trade associations, business communities and major media outlets.The survey consists of only 10 questions and should take no more than 5 minutes to complete, although it may require you to look up or add…

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Top 15 Crowdfunding Platforms In Europe

Top 15 Crowdfunding Platforms In Europe

By Priti Ambani, Crowdfunding in Europe has attained a significant level of growth, adoption and maturity in recent years. The European Commission’s Startup Europe that “aims to strengthen the business environment for web and ICT entrepreneurs so that their ideas and business can start and grow in the EU”, has the EU rooting for better access to capital and a lowered barrier for success — all possible through crowdfunding. Equity crowdfunding has enabled small time investors to diversify their portfolios and gain ownership in high growth startups, leveling the playing field. Continued growth of European crowdfunding platforms would require 1) a legal crowdfunding framework across Europe and 2) a rating…

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CrowdFunding and the FCA

CrowdFunding and the FCA

By Barry Sheerman (Huddersfield, Labour) It came as a slightly early Christmas present to learn that I had managed to secure a debate on crowdfunding and crowdsourcing, and the implications for the Financial Conduct Authority’s current inquiry into the regulation, or the possible need for regulation, of crowdfunding. I came to crowdfunding in a rather peculiar way. I kept hearing people talking about it, and I am a serial and committed social entrepreneur. In fact, the other day a journalist said that I must be one of the few MPs who own a church, a poet’s house and a pub, all through trusts, foundations or charities…

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EU executive plans to promote crowdfunding sector

EU executive plans to promote crowdfunding sector

HUW JONES | LONDON | Mar 21, 2014 – (Reuters) – A European Union “quality label” and possible state aid for crowdfunding would help the 1 billion euro (848.8 million pounds) sector grow to fund economic growth, the bloc’s executive body said in a document seen by Reuters. Crowdfunding allows individuals and small businesses to raise money from pools of investors who can put money into peer-to-peer lending schemes or securities such as unlisted shares. It is often hosted on online platforms such as Crowdcube, Funding Circle and Kickstarter. The European Commission, in a draft document to be published next week, said crowdfunding has real potential…

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