Crowdcube’s co-founder Luke Lang has voiced his support for the government’s call for a regulatory review on crowdfunding in the UK, saying the platform is committed to working with the Financial Conduct Agency (FCA) to ensure crowdfunding in this country is safe for investors.
In a review by the regulatory body earlier in the month, the organisation concluded: “We have seen the crowdfunding market continue to grow rapidly. We recognise that it is still early but, at present, we see no need to change our regulatory approach to crowdfunding, either to strengthen consumer protections or to relax the requirements that apply to firms.”
Although the FCA came to the conclusion that nor further action was necessary, it did say platforms need to be mindful that they are not promoting offers the general public may not understand or be favourable towards seasoned investors.
Additionally, it voiced concerns that some forum content was being filtered, which could foster an unfair playing field for all investors – whether small-time or VCs.
“As the market leader in the UK, I strongly feel that is vital that the FCA effectively regulates all platforms (particularly newer entrants with less resources and experience of operating in a regulated environment) to ensure all platforms follow the high standards we have adopted. This should help to avoid potential issues occurring in the future,” Lang told Crowdfund Insider.
However, he said other platforms and news outlets weren’t playing ball with the regulatory authority and this is saddening. “It is frustrating and somewhat bewildering that a few people ignored the FCA’s conclusion that there was no need to change their regulatory approach to crowdfunding,” he continues.
He finished by voicing his own opinion, saying the new regulations are currently working well and strike the right balance between encouraging new investors to try out crowdfunding as a form of income and protecting those already involved in alternative financing.
“The new regulations are working well and in my opinion strike the right balance by appropriately protecting investors whilst nurturing much needed new forms of finance for Britain’s start-up, early and growth stage businesses,” he says.