Andrew Bailey, Chief Executive of the Financial Conduct Authority, in his previous position as CEO of the Prudential Regulation Authority, wrote a letter to Andrew Tyrie of the Treasury Committee in June of this year stating that “…the (British) crowdfunding sector is currently too small to be systemically important to the UK financial system.” Bailey also stated that: “The current regulatory framework for fundraising has not kept pace with changes in technology and consumer behaviour,” which he said was leading to an increase in fraud and money laundering.
Andrew Bailey, Chief Executive of the Financial Conduct Authority, in his previous position as CEO of the Prudential Regulation Authority, wrote a letter to Andrew Tyrie of the Treasury Committee in June of this year stating that “…the (British) crowdfunding sector is currently too small to be systemically important to the UK financial system.” Bailey went on to say that the rapid rate of growth seen in the crowdfunding sector would be monitored, but at this stage did not pose any sort of “systematic risk” to the UK economy and therefore did not, as yet, require backing via government policies or increased regulation.