The following Financial Services practice note provides comprehensive and up to date legal information covering:
This Practice Note discusses the 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’s 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—the ECSP Regulation and the MiFID II Amending 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 £10. Typically the entrepreneur will be required to specify a target amount and cut-off date, and will not receive funding unless this target is reached.
There are three broad types of crowdfunding, each distinguishable by the return for the funder:
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
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Tipping off and prejudicing an investigationIt would undermine the benefit to the authorities if, a suspicious activity report (SAR) having been made, the alleged offender were to be made aware of the interest in their activities so that they could take steps to cover up their misdeeds or disappear.
This Practice Note provides guidance on claims for ‘use and occupation’ or mesne profits, and how and when double rent or double value can be claimed.Claims for use and occupationA claim for use and occupation is possible where there is occupation of land without an express agreement fixing the
LiabilityFalse imprisonment consists of the complete deprivation of liberty without a lawful basis. Claims will in practice be made against a public body that exercises detention powers, usually a local police force, the Secretary of State for the Home Department or the Secretary of State for
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