UK Crowd Funding Moves Towards US Rules

Variety is reporting that the UK has moved to tighten its debt and equity crowdfunding rules to be more in line with the recent SEC proposed regulations.

Equity securities ” will only be able to be offered to clients who: are certified sophisticated investors or high net worth investors; who confirm that they will receive regulated investment advice or investment management services from an Financial Conduct Authority-authorized person; and who certify that they will not invest more than 10% of their net investable portfolio in unlisted shares or unlisted debt securities…The new rules will also require operators of platforms to assess the suitability of investors who have not been provided with advice.”

Changes relating to investor certification and investment limitations move in the direction of “structural” investor protections (ie, limiting potential annual losses) laid out in the Crowd Fund Act and the SEC rules.

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at:
This entry was posted in Broker dealers, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Film, FINRA, Funding Portals, Investments, Jobs, SEC, Small Business, Venture Capital, Wall Street and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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