The regulator is planning to tighten due diligence rules for crowdfunding and peer-to-peer lending (P2P), saying it is concerned the current approach is not working well.
In a call for input published on 8 July, the Financial Conduct Authority (FCA) said it wants to hear firms' views on current due diligence standards for investment- and loans-based crowdfunding platforms. Currently, P2P investor platforms do not have to adhere to specific levels of due diligence but are allowed to develop their own approach to researching the investments they offer. However, the regulator said it is concerned the approach may not be working well as "some businesses that successfully raise capital fail shortly afterwards" putting investors at risk. It said it is consid...
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