Last week the FCA issued a consultation paper (‘CP’) on Loan-based (‘peer-to-peer’) and investment-based crowdfunding platforms, proposing changes to the existing applicable regulatory framework.
Although the focus of the CP is on the business models of platforms specifically, we are particularly interested in this CP because it also has a potential impact on firms which do not operate platforms but do issue non-readily realisable securities, which are subject to the same existing financial promotions and disclosure rules and the marketing restrictions around direct offer financial promotions.
We have selected the proposals that we think will affect our clients, if implemented:
We will be very interested to see the final policy statement which is expected to be issued in Q2 of 2019 and we will publish the new rules when they are available. In the meantime, we intend to assist our clients in anticipation of the rules being put into motion.