UK Crowdfunding Association brings in Camberton to engage government

The nascent 'crowdfunding' industry has brought in public affairs support in the wake of a key report backing its potential.

Julia Groves: UKFCA chair
Julia Groves: UKFCA chair

The UK Crowdfunding Association (UKCFA) has appointed Camberton to handle public affairs and corporate comms on a retained basis following the agency’s work on its official launch in March.

The appointment comes as the Government considers who should oversee the sector and how much regulation it needs.

Last month the final report by the Parliamentary Commission on Banking Standards, Changing Banking For Good, offered its support to crowdfunding platforms as a source of competition to mainstream banks.

The report stated that crowdfunding regulation could come under the new Financial Conduct Authority but noted the FCA ‘had little expertise in this area’ and regulation ‘must be appropriate and proportionate’.

It also called on the Treasury to examine the tax arrangements and incentives for crowdfunding firms compared with their competitors and ensure a level playing field with mainstream banks and investment firms.

The UKFCA, comprising 12 businesses, has established a code of practice for crowdfunding, which it defines as raising money directly from a large number of people all putting in relatively small amounts of money.

Examples include UKFCA member Crowdcube even using the technique in May to raise £1.5 million from 259 investors in three days.

UKFCA chair Julia Groves said: ‘Our sector is already providing real value in the provision of capital for the engine room of the UK economy, and Camberton will be working to help deliver a proportionate regulatory framework that will ensure consumer protection without stifling our growth.’

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