Fintech Law Module A Chapter 4

Question 1

Describe the 4 different types of crowdfunding

Answer 1

1. Donation
2. Reward
3. Investment
4. debt

Question 2

Why is a crowdfunding regulation needed?

Answer 2

A lack of regulation may lead to gaps in the platform and is an opportunity for abuse where the interests of investors are not protected.

Question 3

Following the FCA report, what are the most used business models among crowdfunding platforms? Name 3.

Answer 3

1. Conduit platforms
2. Pricing platforms
3. Discretionary platforms

Question 4

What criteria should the regulator consider when deciding whether to grant
authorisation to the crowdfunding platform? Name 5

Answer 4

1. safety;
2. soundness of operations;
3. proposed operative systems;
4. controls;
5. personnel.

Question 5

Following the Clifford report, what is one of the main issues regarding investor protection on crowdfunding platforms?

Answer 5

Conflict of interest

Question 6

What are some topics to pay special attentions to when outsourcing services?

Answer 6

Should be non-critical operational functions