FCA to impose tighter rules on 'too complex' crowdfunders

Concerns over disclosure about risk and performance

Carmen Reichman
clock • 2 min read

The Financial Conduct Authority (FCA) is to consult on additional rules for crowdfunders after its call for input raised "a number of issues for discussion", it has said in an interim statement.

In particular, the regulator wants to introduce more prescriptive requirements on disclosure by both loan-based and investment-based crowdfunding platforms. It is also looking to add requirements and restrictions on cross-platform investment and extend mortgage-lending standards to loan-based platforms. The FCA found in its call for input that it was difficult for investors to compare platforms with each other or to compare crowdfunding with other asset classes due to "complex and often unclear" product offerings.  It said it was difficult for investors to assess the risks and retu...

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