As expected, our Government have run for cover when it comes to answering any detailed queries about the lack of proper regulation in the equity crowdfunding sector.
Stephen Barclay MP is Economic Secretary to the Treasury. He stated in a reply to a query on the matter, that ECF is regulated by the FCA - as if this was news. He made no mention of what this meant but continued that -
''The Government has implemented a regulatory regime that is robust and proportionate......''
As we all know this is total nonsense. The FCA do what you tell them Stephen and as you are not telling them anything that is exactly what they are doing.
He goes on to raise the vital issue but spectacularly manages to miss the nail and hit his thumb. The issue is that ECF is new and that the FCA have no experience or expertise or Government advice on how to treat it - because it is new. Its all part of the new age with new technologies and the old system cannot cope with it. The best he can offer is that the ECF platforms are supposed to regulate offers so that they are clear and fair.
Thank you, Stephen.
It is a lengthy answer which says absolutely nothing and addresses none of the real issues. That presumably is why he has been given his job.
He might of course have a few other pressing matters stuck to his desk. Meanwhile the ECF mess continues to build.
Pass the fudge.