FCA mulls tightening of crowdfunding due diligence

Regulator wants to hear firms' views

Carmen Reichman
clock • 3 min read

The regulator is planning to tighten due diligence rules for crowdfunding and peer-to-peer lending (P2P), saying it is concerned the current approach is not working well.

In a call for input published on 8 July, the Financial Conduct Authority (FCA) said it wants to hear firms' views on current due diligence standards for investment- and loans-based crowdfunding platforms. Currently, P2P investor platforms do not have to adhere to specific levels of due diligence but are allowed to develop their own approach to researching the investments they offer. However, the regulator said it is concerned the approach may not be working well as "some businesses that successfully raise capital fail shortly afterwards" putting investors at risk. It said it is consid...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

FCA impersonation scam reports hit almost 5,000 in six months

FCA impersonation scam reports hit almost 5,000 in six months

480 victims defrauded

Cristian Angeloni
clock 27 August 2025 • 1 min read
The impact of the Overseas Fund Regime explained

The impact of the Overseas Fund Regime explained

Initially covers UCITS funds issued in most EU and EEA member states

Mark Rendle
clock 27 August 2025 • 3 min read
Viewing Consumer Duty through the vulnerability lens

Viewing Consumer Duty through the vulnerability lens

Clients can be vulnerable in many ways

Mark Sanderson
clock 14 August 2025 • 4 min read