On 17 August 2021, the FCA published a portfolio strategy letter (dated 2 July 2021) on investment-based crowdfunding.
In the letter the FCA reminds CEOs of investment-based crowdfunding (IBC) firms that they are responsible for the conduct of their firm as a whole. The FCA expects them to ensure that there is clear accountability within the senior management team for addressing the issues set out in the letter and, where relevant, sharing the contents of the letter with any Appointed Representatives. The FCA also reminds CEOs that it expects their firms to maintain appropriate systems and controls to facilitate the production and reporting of high-quality data on a timely basis. The remainder of the letter provides an update on the FCA’s view of the key risks it sees in the IBC market (inappropriate investments, scams, Appointed Representatives oversight and disorderly firm failure), its expectations of firms and a summary of the work it intends to do.