We previously reported on FCA's intentions to bring a test case to obtain court declarations that would help resolve contractual uncertainty in several business interruption policies, stemming from claims relating to COVID-19. On 1 June, it confirmed the results of its enquiries to date, and its next steps.
In this article we consider the provisions that deal with ensuring investor protection, including examining who can invest on a crowdfunding platform, what standards apply to investor communications and marketing, what the pre-contract information requirements are and what the proposal says about investors who wish to cancel or sell their investments.
The High Court has reiterated that the primary aim of search orders is to preserve evidence, not to serve as some form of early disclosure. The High Court also chose to remind parties (and their representatives) that exceeding the permission given to them by these search orders, carries with it the risk of substantial penalties and severe consequences. In a recent case, it was held that the Claimant and its legal representatives, who pre-emptively searched seized material, without the Defendants' or the Court's permission, committed "serious and completely unjustified" breaches of the terms of the search order.
On 8 March 2018 the European Commission submitted a Proposal for a Regulation of the European Parliament and of the Council on European Crowdfunding Service Providers for Business. Now, two years later, the final compromise text has been published.
FCA has announced today (1 May) its intention to obtain a court declaration on business interruption ("BI") insurance to resolve doubt for businesses who are facing uncertainty on their claims in the light of the ongoing problems resulting from COVID-19. Its decision comes in the light of continuing and widespread concerns about the lack of clarity and certainty for some customers making BI claims, and the basis on which some insurers are making their decisions on claims.
The Government is setting up a co-investment fund, known as the "Future Fund", to provide convertible loans of between £125,000 and £5 million to UK high growth companies. Private third party investors ("Matched Investors”) must at least match the amount of bridge funding provided under the convertible loan.
The latest limb of the government's support package for business opened on Monday to facilitate access to finance for medium sized and larger businesses affected by the coronavirus outbreak. As with the other government lending support packages, access to the Coronavirus Large Business Interruption Loan Scheme ("CLBILS") is through British Business Bank accredited lenders.