Of Relevance to:
Firms that operate loan-based crowdfunding platforms
Those firms operating loan-based crowdfunding platforms – and specifically ones which facilitate loans to lending businesses – should have received, and actioned by now, a ‘Dear CEO’ letter from the FCA.
The FCA is concerned that such lending businesses may be undertaking the activity of ‘accepting deposits’ without the required permission.
Although it would be the lending business and not the platform that could be undertaking the regulated activity of ‘accepting deposits’ for which it does not have permission, the FCA would consider the platform operator to be in breach of Threshold Conditions and Principles as a result of facilitating.
The ‘Dear CEO’ letter also set out actions it expected the platform operators to undertake with details of those actions being submitted to the FCA.