PS14/4: The FCA’s regulatory approach to crowdfunding over the internet, and the promotion of non-readily realisable securities by other media

This policy statement summarises and gives response feedback to CP13/13 - The FCA’s regulatory approach to crowdfunding (and similar activities)[1]. We also publish rules that came into force on 1 April 2014.

Why are we publishing this policy statement?

In this paper we outline the new regime that will apply to firms operating loan-based crowdfunding platforms (including peer-to-peer lending platforms).  

We also update the regime applying to firms that either operate investment-based crowdfunding platforms or carry on similar regulated activities.

Policy statement PS14/4[2]

Who should read this paper?

This policy statement will interest:

• consumers and consumer organisations with an interest in the investments offered on crowdfunding platforms
• firms that operate peer-to-peer or peer-to-business lending platforms
• firms that operate investment-based crowdfunding platforms
• firms that use offline media to communicate direct offer financial promotions for non-readily realisable equity or debt securities

Next steps

The new and amended rules came into force on 1 April 2014, subject to certain transitional arrangements.

Review

A review of the regulatory regime for crowdfunding and the promotion of non-readily realisable securities by other media[3]

In this paper we look at the implementation of the new rules so far. We will conduct a full post-implementation review of the rules in 2016.

Interim data gathering for firms running peer-to-peer platforms

Our rules require firms operating peer-to-peer platforms under interim permission to report certain information to us on a regular basis:

• Report FSA039 confirms whether or not the firm held client money or client assets in the reporting period (i.e. the previous half-year). This report is required half-yearly.  
  Use this form if you have been asked to submit report FSA039 to us[4]
• Report FIN070 summarises details of peer-to-peer agreements that have been arranged in the reporting period (i.e. the previous quarter-year).  This report is required on a quarterly basis.
  Use this form if you have been asked to submit report FIN070 to us[5]

The completed forms, or an email confirming a Nil Return, should be sent to [email protected].

If you have any questions about this data collection, please contact us[6].

Further information

For more information:

• see our information for consumers on crowdfunding[7]
• read CP13/13 - The FCA’s regulatory approach to crowdfunding (and similar activities)[1]
• read our review
• look at the Handbook[8]