BlogLatest NewsNew regulations for crowdfunding received mixed reviews

New regulations for crowdfunding received mixed reviews

Crowdfunding, which lets start-ups raise money by getting lots of people to invest small amounts via web portals, is part of the flourishing alternative finance market.

The sector has grown rapidly since the financial crisis of 2008 by providing start-ups and small businesses with an alternative source of lending to high-street banks.

But from the start of April, inexperienced investors will have to certify that they will not invest more than 10% of their portfolio in unlisted businesses under new rules from the FCA.

The body said its new regulations will protect consumers and increase competition in the crowdfunding market.

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