The UK regulation of crowdfunding platforms鈥攅ssentials

Published by a 成人影音 Financial Services expert
Practice notes

The UK regulation of crowdfunding platforms鈥攅ssentials

Published by a 成人影音 Financial Services expert

Practice notes
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Scope of this Practice Note

This Practice Note focuses on the UK regulatory issues faced by crowdfunding platforms from a financial services perspective. It should be read in conjunction with the Financial Services and Markets Act 2000 (FSMA 2000), secondary legislation and regulatory rules and guidance, such as provisions in the Financial Conduct Authority (FCA) Handbook and the FCA鈥檚 webpage dealing with crowdfunding. This Practice Note also briefly discusses the initiatives taken at EU level in relation to the regulation of crowdfunding which is discussed further in Practice Note EU Regulation of crowdfunding鈥攖he ECSP Regulation and the MiFID II Crowdfunding Directive.

Crowdfunding (sometimes called 'crowd sourcing' or 'crowd financing') works on the premise that persons seeking funding, such as entrepreneurs, showcase projects or companies on an internet platform and members of the public provide funding through the platform. There is no limit to the amount of individual contribution but, unlike more established methods of fundraising, many platforms permit participants to contribute as little as 拢10. Typically the entrepreneur will be required to specify a target amount and

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Jurisdiction(s):
United Kingdom and Ireland
Key definition:
Platforms definition
What does Platforms mean?

The technological solution to facilitate the administration of a wrap account, allowing a series of investments in different tax wrappers to access a wide range of collective investment funds, providing a simple presentation to both adviser and customer.

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