By the Blouin News Technology staff

Financial leader in U.K. questions crowdfunding

by in Enterprise Tech.

(Source: GotCredit/flickr)

(Source: GotCredit/flickr)

This week Andrew Tyrie, chairman of the Treasury Committee in Britain’s parliament, announced that he asked the Bank of England and the Financial Conduct Authority (FCA) to check if more protections were needed for consumers around investing in crowdfunding projects, specifically ones that offer loans.

His questions come after the U.S. Dept of Justice opened an inquiry into Lending Club Corp earlier in May. A probe found that the company had falsified documentation when selling a package of loans, according to Reuters.

Tyrie is asking broader questions about whether or not platforms need more capital to withstand downturns, noting the responsibility lies for ensuring accurate information is provided to potential investors through crowdfunding platforms, and the FCA’s assessment of consumer understanding of the level of risk associated with investment opportunities offered through such platforms.