With the Financial Conduct Authority (FCA) consultation period scheduled
to end shortly, CrowdConsent is announcing a simple technology solution
to address current proposals to regulate both equity and debt based
crowdfunding.crowdfunding marketing
The CrowdConsent service
allows platforms to demonstrate that they have obtained the informed
consent of crowdfunders in a way that is independently verified. This
solution has been welcomed by multiple industry leaders and platform
owners who believe that crowdfunding should be open to all and
regulations, as currently proposed by the FCA, would exclude the
majority of “the crowd” from crowdfunding.
Barry James, designer of CrowdConsent and founding director of the Social Foundation and TheCrowdfundingCentre, has
created this technology to provide what could be a new industry
standard to ensure a higher level of confidence than ever before that
the appropriate consent has been consciously and actively given and
precisely recorded – but with the minimum of friction and fuss for both
the user and the platform.
“What
this does is ‘place the onus on consumers to take responsibility for
their actions and investment decisions’ in full accord with the
principles the FCA has laid out* avoiding any need for increasingly
complicated and restrictive ‘nanny’ measures to protect people from
themselves.crowdfunding advertising
“This makes redundant any need for the FCA’s 10%-of-portfolio
rule and so removes the need to exclude ordinary people
(‘non-sophisticated’ investors) access to equity crowdfunds. Under this
problematic rule people would be restricted to investing less than 10%
of their ‘investible portfolio’ – which sounds fine until you realise
that only a tiny proportion (who are in any case sophisticated
investors) maintain such a portfolio. They freely choose to make small
investments and contributions from disposable income or savings.”
“The CrowdConsent service makes it safe for them to do so with
the full assurance that they are fully informed of the possible outcome
that they may lose that investment – and should only make it in full
knowledge of this.”
Platform owners concerned about the implications of FCA regulation are backing CrowdConsent.
Mark Thackeray Founder / Director of EcoPropagator.com said:
“Crowdfunding provides an opportunity for members of
the wider community to support the growth of companies by risking small
amounts. The beauty of this innovative approach is that it provides
proof positive that warnings have been presented and actively
acknowledged removing the fear that people may be unaware of the risk
and so any need to exclude people – crucially helping to keep the crowd
in crowdfunding.”
Karen Darby, Founder and CEO of CrowdMission, said:
“At last a simple and effective way to keep
crowdfunding inclusive. I hope the legislators take heed, if they don’t
then I would question their motives.
“Whether you are an investor or an entrepreneur looking to launch
a pitch on CrowdMission we insist that all of our members sign up to
our Social Investment Values that emphatically preserve the rights of
the individual to invest in mission-driven businesses.”
Stephen Hazell-Smith, an architect of the AIM market and founding
chair of the Plus Market who has 30 years experience of investing in
small companies says:
“The regulator is always concerned that there is no
proof that investors have read the risk warnings. CrowdConsent puts that
concern to rest.”

Barry James together with his team at The Crowdfunding Centre have now offered to make the CrowdConsent service freely available as a service to crowdfunding platforms in the UK and worldwide.indiegogo marketing
“For other platforms, such as rewards and donation
based which aren’t yet subject to FCA regulation, CrowdConsent provides
the means to record active, traceable, consent to allay concerns
regarding higher value transactions – something already considered
desirable by the leading platforms taking these issues most seriously –
and which may soon become essential for all.
“For the geeks among us, the service provides for both fixed and
flexible messages to be fully recorded, so is flexible enough to adapt
and change with evolving requirements.”
CrowdConsent is configured to accomplish the regulatory requirements by:
- At the appropriate place in the transaction ( just before the user
commits to making an investment) an unavoidable window appears with the
appropriate message, such as the following:
“Please confirm you understand that if
you proceed you may lose all or part of this investment. If you
understand and agree to this, record your consent by entering this code
below: XYZ123456.”kickstarter marketing
Entering the unique code into the box
provided (in this case XYZ123456) ensures consent is conscious and
active and enables recording and tracking of the consent given (by whom,
when and where). Highly secure cryptographic techniques ensure that
privacy is fully preserved while information on the consent-event and
message are recorded centrally beyond the control of the platform and
therefore beyond reproach.
The facilities provide (via a free, open
source, SDK) the means for any competent web developer to implement this
quickly and easily so that it can easily be grafted into existing and
new platforms with the minimum of fuss.
CrowdConsent is also supported by The Open Crowds Innovation Alliance
which brings together those interested in open crowdfunding and other
crowd centred innovations and in ensuring they stay open to all and
embody the same spirit to be, and remain, by default – open, supportive
and inclusive.kickstarter project
Posted from : http://www.crowdfundinsider.com/2013/12/28172-crowdconsent-aims-solve-fca-crowdfunding-regulation-requirements/