LONDON, July 27 (Reuters) - Britain’s markets watchdog proposed tougher rules on Friday for loan-based crowdfunding platforms, saying business models in the sector have become increasingly complex and more consumer protection was needed.
The Financial Conduct Authority proposed several rule changes in a long-delayed response to its December 2016 review of the sector’s regulation.
It has proposed extending existing marketing restrictions for investment-based crowdfunding platforms to loan-based platforms.
“We believe that loan-based crowdfunding can play a valuable role in providing finance to small businesses and individuals but it’s essential that regulation stays up to date as markets develop,” said Christopher Woolard, FCA executive director of strategy and competition.
Reporting by Huw Jones, editing by Emma Rumney