Members of St Pauls Chambers have advised in many cases involving crowdfunding.

Crowdfunding is the raising of finances for ventures or other objectives, by inviting large numbers of people and businesses to subscribe small amounts of money. This is usually done over the internet, and these schemes are now generally managed by Platforms such as Kickstarter, Crowdcube or Seedrs.

Crowdfunding Law & Regulations at St Pauls Chambers

Crowdfunding regulation barristers of St Pauls Chambers have advised in many cases involving crowdfunding. For example, whether money that has been held by the platform is ‘client money’ and should therefore be held in a designated client account. These cases required consideration of article 36H of the Regulated Activities Order, and whether or not the overarching agreement was a B2B agreement or P2P agreement (which fall within the definition of client money within the client money rules CASS 7 [Client Asset Sourcebook]).

New Crowdfunding Laws

In 2014, responsibility for the regulation of the consumer credit market passed to the FCA. This included responsibility for regulation of loan based crowdfunding platforms.

The crowdfunding regulations are designed to ensure the following:

  • Consumers have access to full and clear information, to allow them to properly assess the risk of potential investments
  • Client money is properly protected and firms meet minimum capital requirements
  • Proper dispute resolution systems are in place

Non-readily realisable securities are not listed on regulated stock markets and carry significant risk, so new crowdfunding laws and consumer protection rules were introduced in 2014. These laws limit those who can be approached to invest.

Loan-based crowdfunding is also a high growth sector, which again is a highly-regulated sector for both individuals and businesses finding it easier to borrow on a platform such as Lendy and Zopa, than to approach their high-street branch manager.

For more information, don’t hesitate to contact or clerks  via email or by phone.

“The clerking team is responsive, extremely approachable and knowledgeable”

The Legal 500

Get in touch

For further information and enquiries please contact our clerks team.

Crowdfunding Law & Regulations Barristers

Simon Myerson KC

Simon Myerson KC

Call: 1986 Silk: 2003

Jeremy Barnett

Jeremy Barnett

Call: 1980

Contact Us

Chambers is centrally located within walking distance of the train station, secure car parks and the Courts.

Contact Us

St Pauls Chambers
Park Row House
19-20 Park Row

For out of hours assistance please call the senior clerk on 07854170429.

The switchboard will open from 08:30 until 17:30

Phone: +44 (0)1132 455 866
Email: [email protected]
CJSM: [email protected]

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