Understanding Attitudes to investment and risk of regulated Crowdfunding and P2P Lending customers.

Executive Summary

1. Customers do not have a one-size-fits-all attitude to risk.

• Customers of crowdfunding and p2p lending platforms demonstrate a good understanding of the benefits and risks of investment. Only 0.7% of respondents believed that investments in crowdfunding and p2p lending itself constituted a low risk investment.

• There is little overlap between investors in regulated crowdfunding / p2p platforms and unregulated minibonds, leveraged CFDs or Crypto assets.

• Investors in both Investment-based crowdfunding (IBCF) and P2P lending diversify their investments to spread their risk, both across different projects / businesses and across different platforms.

• Customers are strongly opposed to the use of mass marketing bans to restrict access of less experienced investors to certain investments

• From over 1000 verbatim responses —just 12 respondents were supportive of the direction being proposed by the FCA. The majority of respondents voiced concerns that these reforms were unnecessary and failed to address the key problems of the high-risk investment market.

• Customers support better enforcement and policing against the imposition of additional rules and restrictions on their investment choices.

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