What's fair in crowdfunding? What's the correct balance between properly protective regulation and allowing equity and peer-to-peer crowdfunders such as Money&Co. to promote their offers?
The UK's top financial watchdog, the Financial Conduct Authority (FCA), is assessing these very questions right now. Citywire reports on the FCA's consultation process, in particular the regulation of social media in crowdfunding raises.
"The Financial Conduct Authority (FCA) is consulting on social investment to see whether regulation is acting as a barrier to people investing in the sector.
"In a 'call for input' paper, the FCA is seeking to establish how regulation impacts the social investment market, and is also seeking feedback from financial advisers who recommend social investment products.
"The deadline for this input is 14 March 2016. After this, the FCA will consider whether it needs to clarify the requirements that apply to social entrepreneurs and the protection available to consumers for social investments.
"Within this call for input the FCA will ask for instances where rules and policies may hinder investment for social purposes.
"This work has stemmed from the FCA's previous consultation on crowdfunding when several respondents mentioned that they struggled with the regulator's approach to social investment.
"'The social investment market is developing quickly and regulation needs to keep pace,' said FCA director of strategy and competition Christopher Woolard."
What's Your View?
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