Possible "unregulated collective investment scheme".
By Tim Colwill on April 22, 2013 at 8:52 am
The crowdfunded and extremely pretty-looking racer Project CARS has been forced to suspend the taking of payments following an ongoing investigation by the UK Financial Services Authority.
The FSA, which investigates financial firms and banks on behalf of the UK Government, is concerned that Slightly Mad Studios may be operating an “unregulated collective investment scheme” — in other words, that they’re taking people’s money and promising them a return on it if the game sells well, without the oversight of the usual government regulations which govern such activities. The FSA has not commented on the matter, but at this stage Slightly Mad Studios are free to continue operating as usual (only without the ability to take payment).
Slightly Mad’s creative director Andy Tudor has spoken to Eurogamer, saying “The FSA came to us wondering what the hell we were doing, thinking, ‘Hang on a minute, you’re taking money from people – is this some sort of Ponzi scheme where people take money and then run away with it?’”
“They asked what we’re doing. We explained it to them. They said, ‘OK, you might need to change a few things here and there.’ We’ve given them our suggestions as to how we might go about that.”
Results of the investigation are ongoing.