The world's first property crowdfunding platform, The House Crowd, has been authorized by the Financial Conduct Authority, or FCA, to exist as a P2P Firm.
The House Crowd can now launch its Innovative Finance Isa to let investors earn their income tax-free on peer-to-peer lending, up to 20,000 euro a year.
Frazer Fearnhead, CEO of The Crowd House, has stated: “We are extremely pleased to announce that after a very long 27 months from applying, we have finally received our direct authorizations from the FCA. It’s been a long drawn out and complicated process, partly because of the different types of products we offer (both equity and peer to peer), and partly due to shifting regulatory goal posts.”
Businesses will "grow and attract more funding" with these protections with investors, giving them more safety nets in case things go south.