Crowdfunding: Trial and regulation

Crowdfunding is becoming big business. According to a report conducted by UK think tank Nesta last month, the UK alternative finance market – which incorporates all forms of crowdfunding – grew by 91% last year from £492m in 2012 to £939m in 2013. Yet, despite this figure, it seems many financial advisers are still in the dark when it comes to alternative finance. While interest in crowdfunding is growing, a lack of clarity about the market and the regulatory implications of recommending it are proving problematic for advisers faced with client enquiries. Seeing the wood for the trees...