Q&As

Could you direct me as to where I can find relevant information regarding the general legal and regulatory environment surrounding fintech and peer-to-peer lending in the UK including any relevant FCA principles?

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Published on LexisPSL on 02/08/2017

The following Financial Services Q&A provides comprehensive and up to date legal information covering:

  • Could you direct me as to where I can find relevant information regarding the general legal and regulatory environment surrounding fintech and peer-to-peer lending in the UK including any relevant FCA principles?
  • To what extent are the rules relating to ‘crowd funding’ relevant?

Could you direct me as to where I can find relevant information regarding the general legal and regulatory environment surrounding fintech and peer-to-peer lending in the UK including any relevant FCA principles?

You may find: Fintech—overview and Cryptoassets—overview useful which contain a number of Practice Notes and news items relevant to the financial services regulatory environment surrounding fintech.

Practice Note on: The regulation of crowdfunding platforms also sets out three broad types of crowdfunding, each distinguishable by the return for the funder:

  1. Investment model—individuals make investments in return for a share in the profits or revenue generated by the company/project

    In the UK, the financial services regulatory regimes for corporate finance business and investment funds both tend to shape the structure of investment-based crowdfunding platforms. As both regimes have not traditionally been used to facilitate the participation of large numbers of retail investors, there was lobbying for the creation of a new regulatory regime specifically designed for investment-based crowdfunding. However, the Financial Conduct Authority’s (FCA) approach was to acknowledge the permissibility of investment-based crowdfunding as a valid business model operating under the existing regime, with minor amendments. For example, the FCA clarified its expectations of firms wishing to promote 'non-readily realisable securities' covering most unlisted shares and debentures: such investments can be sold on a non-advised basis provided firms ensure the investors have the requisite level of

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