In this Feedback Statement, the Financial Conduct Authority (FCA) report on the main issues arising from the Call for Input to the post-implementation review of the FCA’s crowdfunding rules and set out their next steps.
The FCA are publishing a summary of the feedback they received following Call for Input in July 2016, which summarised market developments since 2014 and some of emerging concerns.
Based on the review of this feedback, together with the FCA supervision of crowdfunding platforms currently trading and our consideration of applications from platforms for full FCA authorisation, the regulator believes they need to modify their rules in a number of areas.
While the review is ongoing, the FCA plan to consult early next year on rules to address some of the more immediate concerns.
Over the coming months, they will continue research into the market. This research will enable them to understand if other concerns set out in the Call for Input, flagged by respondents, or reflected in their own experience of regulating these markets represent a source of potential consumer detriment that they should act to mitigate.
If so, the FCA will publish a second consultation proposing further rule changes.