MPs team up to promote alternative finance
A group of influential cross-party MPs have come together to form a Parliamentary Group to investigate and promote non-bank finance models which can fund community, social and private sector companies.
Over 25 MPs have already joined the All-Party Crowdfunding Group, reflecting the importance this emerging sector which has the potential to rival mainstream banking in the future. According to the Groups’ Chairman, the Labour MP for Huddersfield Mr Barry Sheerman, the launch of the Group is well timed, with the FCA only recently publishing a new draft framework on how crowdfunding should be regulated.
Commenting on the need for the new All Party Group, Mr Sheerman said:
“That so many MPs from across the political divide have already joined the Group is testament to the importance for non-bank financing models to be allowed to flourish. The Government has already stressed its support for the sector, and the FCA’s proposals are a positive step forward for the industry, however there remains a huge amount to be done to raise awareness and deliver a level playing field with mainstream banks.”
The All-Party Group held its first meeting in the House of Commons on Thursday 31st October, where MPs heard from the FCA lead on the regulatory changes David Geale about what crowdfunding platforms, and their users, can expect.
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