View Full Version : The U.K. FCA Proposes New Crowdfunding Rules

10-28-2013, 09:09 PM
The UK has had a relatively easy go of it when dealing with equity crowdfunding. Having said this, things are about to change. The Financial Conduct Authority has proposed new rules coincidentally around the same time as their US counterpart, the SEC. The rules, which were proposed, are scheduled to go into affect in April of 2014, and would require equity crowdfunding platforms to get registered by the FCA, and incur additional expenses. The FCA will also regulate the way that the promotion of unlisted shares and debt securities are handled, with them only being able to be offered to people with high net a high net worth, or who have seeked investment advice from people or agencies approved by the FCA. Those without high a net worth will only be able to invest 10% of their portfolio in these kinds of instruments.

In My opinion this is taking more of a step back, while the US is taking a step forward.

More details on the proposed regulations:

10-29-2013, 03:51 AM
Once again, it's that trade-off between extra safety for the 'crowd' and making it harder for those who need the funding.

10-29-2013, 09:14 PM
Yep, it's certainly a tough line to toe. Somewhere in the middle is what we need.