Alternative Funding Network |
FCA Rules Released for Crowdfunding Activities in the UK
The Financial Conduct Authority has released new rules for the UK Crowdfunding sector. Generally, Industry players received these rules positively; sentiments echoed that new regulation helped balance the sectors development while promoting consumer protection. However, some industry commentators are unhappy with the new rules. Founder of the aggregator TheCrowdfundingCenter argues that new rules around ordinary retail investors could hamper and alienate small-time investors from participating in the sector.
As we learned in our Phase 1 research, the current investor make-up of the sector is predominately high-net worth individuals or sophisticated investors. As such, it is more probable that these new rules will minimally effect changes in investor activity.
From the desk of Tania Ziegler
As we learned in our Phase 1 research, the current investor make-up of the sector is predominately high-net worth individuals or sophisticated investors. As such, it is more probable that these new rules will minimally effect changes in investor activity.
From the desk of Tania Ziegler