Understanding FCA Authorisation of P2P Lenders

A tiny snail on a ruler in the garden

We want a well-regulated market with many participants investors can choose among. But what is going on with the long queue of peer-to-peer lending platforms looking for full authorisation?  

We expect the Financial Conduct Authority's (FCA) to be dilgent, but also fair.  Quality matters, but quantity matters too.  So far, the market has ten fully authorised players, and at least thirty in a queue. 

Crowd Regulator Will Make Changes To Protect Investors

A crowd of people held within two giant hands

The Financial Conduct Authority has published what it calls 'interim feedback' on its continuing consulation about the rules for crowdfunding, and whether they could be improved.

A lot of the responses we've seen around the web in the first few hours use the word 'crackdown'. It's not a word  we would use ourselves, and we are unable to find it in the FCA's press release or on their website . So we'd like to advise our readers of some things you might not have heard elsewhere:

Transparency In Equity Crowdfunding

A window with rain on it is hard to see through

Who is responsible for transparency in equity crowdfunding? asks a piece in Thursday's CityAM.

We're shocked. You might as well ask: who is responsible for information?

A variety of people in the business - entrepreneurs, platforms, investors - are responsible for collecting information and publishing it. Everybody is responsible for filtering information and evaluating it. And transparency describes a market in which deals are done between people who all have access to the best quality information.

Regulation and Innovation in Euro Crowdfunding

Flags of 27 nations

What kind of regulation does crowdfunding need?, To stimulate growth, protect us from criminals and allow us to experiment with innovative business models? Alternative finance needs to work at scale. That means small scale, as well as big scale. 

Deals of five, ten, or twenty-five thousand don't need to be weighed down with regulations that were designed to protect hundreds of millions. That's been causing a lot of grief in the USA, where small equity raises are still very expensive.