The regulator will consult on whether to tighten up crowdfunding in such a way in the first quarter of 2017, while it also proposed strengthening rules on wind-down plans in the event of platforms failing and restrictions on cross-platform investment.
The Financial Conduct Authority has proposed extending mortgage lending standards to loan-based crowdfunding platforms.
The regulator will consult on whether to tighten up crowdfunding in such a way in the first quarter of 2017, while it also proposed strengthening rules on wind-down plans in the event of platforms failing and restrictions on cross-platform investment.
Andrew Bailey, chief executive of the FCA, said: “Our focus is ensuring that investor protections are appropriate for the risks in the crowdfunding sector while continuing to promote effective competition in the interests of consumers.
“Based on our findings to date, we believe it is necessary to strengthen investor protection in a number of areas. We plan to consult next year on new rules to address the issues we have identified.”
The FCA’s current rules on crowdfunding came into force in April 2014, with the regulator launching a call for input in July 2016 reviewing its rules.
