City regulator to crack down on crowdfunding.

The City regulator has announced a crackdown on crowdfunding – the fast-growing sector that lets businesses and individuals raise money from online investors. The Financial Conduct Authority said it had concerns about loan-based businesses – also known as peer-to-peer (P2P) lenders – and investment-based platforms. It said it was examining online alternative finance to take account of the UK market’s rapid growth from £1.7bn of loans, investments and donations in 2014 to £3.2bn last year.