Due diligence standards
3.11 We have not set out the specific levels of due diligence with which firms operating investment-
based crowdfunding platforms must comply. Instead we have provided flexibility to firms to
develop their own approach. In some cases, it may be possible for investors to undertake
their own analysis of possible investments. In other cases, the firm running the platform will
undertake more of the analysis on behalf of investors. Our current rules allow either approach
but we ask firms to make it clear to potential investors what analysis has been undertaken so
investors can determine how much extra work they need to do.