The peer-to-peer and crowdfunding sector is one the most revolutionary changes to the financial services industry for many years. The growth of the sector has been rapid and the FCA compliance obligations of such firms has continued to develop as the FCA adapt their rules to meet the continuous development of the sector.
Peer-to-peer loans, and loan based crowd funding, are subject to less controls than equity based crowd funding. In the former money is lent by individuals either to other individuals or to businesses. In the latter individuals acquire shares in businesses in return for the money they invest.
FCA authorisation is required for both peer-to-peer and crowdfunding firms, and as part of the process the FCA undertakes substantial analysis of the platform that applicant firms intend to operate, as well as the firm’s systems and controls, approved persons, and business model.
The FCA has produced a summary of the rules applying to peer-to-peer and crowdfunding firms. You can also find out more by downloading our free guide below.
The Scott Robert team consists of ex-regulators, legal practitioners and industry professionals which is why we’ve been chosen by hundreds of firms to assist them with their compliance. Speak to one of our experts today for confidential and no obligation advice about becoming authorised and staying compliant in the peer-to-peer and crowdfunding sector.