Authorisation
In relation to loan-based crowdfunding, as stated above firms that previously had the necessary licence from the OFT were able to apply for interim permission so that they could continue to carry on the regulated activity of operating an electronic system in relation to lending. The FCA said in the Report that 50 firms applied for interim permission, with a further six firms in this sector, or seeking to enter it, by the end of 2014.
In relation to investment-based crowdfunding, the FCA stated in the Report that there are currently 14 firms authorised to conduct regulated activities in relation to investment-based crowdfunding. There are a further 11 firms carrying on these regulated activities as appointed representatives of FCA-authorised firms. With a further 10 firms currently applying to the FCA for authorisation for investment-based crowdfunding activities, this brings the total number of firms in this market, or seeking to enter it, to 35 firms.
The FCA also gave some guidance in relation to what it expects to see in applications for the authorisation of crowdfunding businesses. With reference to the threshold conditions,