The FCA has published a “Dear CEO” letter to firms that operate loan-based crowdfunding platforms to highlight that if a lending business borrows through a platform and then lends that money to others, it may be accepting deposits within the meaning of Article 5 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001. If the borrower does so without regulatory permission to accept deposits, this would involve a breach of the Financial Services and Markets Act 2000 and may be a criminal offence.
View FCA “Dear CEO” letter to firms operating loan-based crowdfunding platforms, 28 February 2017