| Global, UK & Europe | Articles
The FCA have now published their long awaited policy statement for crowdfunding platforms. The rules are broadly in line with the consultation with a few additional clarifications, and covers loan-based (peer-to-peer) and investment-based crowdfunding platforms.
But the recent high profile collapse of a property finance company, will obviously be concentrating the FCA’s mind. Particular concerns are around market stability, market confidence and customer outcomes.
In the policy statement the FCA is looking to:
- clarify governance arrangements, systems and controls platforms
- strengthen rules on wind-down plans
- apply and clarify marketing restrictions
- make an appropriateness assessment mandatory
- set out the minimum investor info
- apply the MCOB and other handbook requirements where relevant.
We expect the regulator will have more to say on recovery and resolution, prudential requirements and provision funds.
The new rules will come into force on 9th December, so they will expect firms to be getting ready. They also gave themselves the option for further consideration and action. With the emphasis on wind down planning and resolution it was surprising that no capital requirements were imposed in relation the costs of wind down. We may well see further prudential requirements between now and the deadline.
We are working with P2P firms in all these areas, and host a regular roundtable for P2P firms. Get in touch if you’re interested in finding out more.
