Crowdfunding

(asked on 11th July 2018) - View Source

Question to the Department for Business, Energy and Industrial Strategy:

To ask Her Majesty's Government whether they have any plans to introduce oversight of crowd-funded business ventures.


Answered by
Lord Henley Portrait
Lord Henley
This question was answered on 20th July 2018

Businesses that have raised capital through crowdfunding operate in the same legal framework as any other business. The Government has no plans to introduce additional oversight of crowd-funded business ventures.

The Financial Conduct Authority oversees the crowdfunding process itself. Loan-based crowdfunding (also known as ‘peer-to-peer lending’) and investment-based crowdfunding (where consumers invest in businesses by buying shares or debentures) are both regulated activities under the Financial Services and Markets Act 2000.

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