LONDON: The nascent “crowdfunding” industry has brought in public affairs support in the wake of a key report backing its potential.
The UK Crowdfunding Association has appointed Camberton to handle public affairs and corporate communications on a retained basis following the agency's work on its official launch in March.
The appointment comes as the UK 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 traditional 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 UK 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 UK Crowdfunding Association 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.
Examples include association member Crowdcube even using the technique in May to raise £1.5 million, the equivalent of about $2.3 million, from 259 investors in three days.
“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,” said the group's chair, Julia Groves.
This story originally appeared on the website of PRWeek UK.