FCA calls for views on social investments

Social investment is a term used to describe investments where the aim is to provide a wider social benefit, rather than the primary driver being a purely financial benefit to investors.

Christopher Woolard, director of strategy and competition at the FCA, said: “The social investment market is developing quickly and regulation needs to keep pace. We want to explore the impact of our regulation to ensure it isn’t inappropriately restricting growth but continues to protect investors.”

The FCA is publishing a wide-ranging call for input asking for social entrepreneurs’ experience of raising capital.

In addition, the FCA is seeking input from financial advisors recommending social investments, views about the potential risks to consumers investing in this sector and we also welcome views from individual consumers.

Following the call for input, the FCA will consider whether it is necessary to clarify the requirements that apply to social entrepreneurs and the protection available to consumers for social investments.