FCA cracks down on crowdfunding websites
The Financial Conduct Authority (FCA) has set its sights on one of the latest crazes to sweep through the small business community - crowdfunding websites.
As reported in The Sunday Times, the regulator is worried that investors are parting with their cash without being fully aware of the risks.
The FCA told the newspaper: “We believe most crowdfunding should be targeted at investors who know how to value a start-up business, and who appreciate the risks involved and that they could lose all of their money.
“We want it to be clear that investors in the majority of crowdfunds have little or no protection if the business or project fails,” it said.
Some websites have already paid to secure approval from the FCA, however many...