FCA

FCA crowdfunding ‘loophole’ exposed

FCA crowdfunding ‘loophole’ exposed

Jon Yarker | 13 March 2014 | Money Marketing – The FCA’s final rules on crowdfunding, published last week, stated investment-based crowdfunding can only be promoted to sophisticated or high net worth investors, retail clients who are advised or non-advised clients who are investing only 10 per cent or less of their net investible assets. But when an investor “self-certifies” themselves as sophisticated, they have to meet only one of the four following criteria: that they have been a member of a network or syndicate of business angels for at least six months; they have made more than one investment in an unlisted company; they are…

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UK to tighten crowdfunding controls to protect investors

UK to tighten crowdfunding controls to protect investors

FREYA BERRY | LONDON, March 6 2014 | (Reuters) – The fast-growing crowdfunding sector will be subject to tighter regulation to provide more transparency and protection for investors, Britain’s financial watchdog said on Thursday. 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. Such fundraising is often hosted an online platforms such as Crowdcube, Funding Circle and Kickstarter. Unlike more traditional private equity funds catering to wealthy individuals or institutions, ordinary people can gain exposure to growing companies by lending as little as 10 pounds, often without the…

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Crowdfunding now subject to new FCA regulations

Crowdfunding now subject to new FCA regulations

FCA Proposed Crowdfunding Rules

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Crowdfunding Industry Report

Crowdfunding Industry Report

Knowledge Peers has completed the first of a series of four research reports aimed at shedding light on SME-focused Investment Crowdfunding. This first phase of research identifies key trends within the nascent industry and provides a snap-shot of the current state of play, including sizing and industry trajectory By focusing on industry players, this report is best suited for those who wish to garner a better understanding of how this nascent industry facilitates SME funding and provides readers with a benchmark analysis on how this industry is developing for SME finance. KEY POINTS: The SME-focused Crowdfunding market is small, with only 31 platforms currently relevant to…

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Will 2014 be the year for crowdfunding?

Will 2014 be the year for crowdfunding?

Jon Yarker | 12 February 2014 | FundWeb – With FCA regulation for crowdfunding to be implemented in April, could 2014 be the sea change for the peer to peer industry? Following a public consultation, the FCA outlined how it was looking to regulate crowdfunding in October 2010. The FCA will stipulate that retail firms can only promote crowdfunding to sophisticated investors, high net worth investors and retail clients who receive regulated investment advice or investment management services. In particular, crowdfunding can only be promoted to retail clients who certify they will not invest more than 10 per cent of their portfolio in unlisted shares or…

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