The Financial Conduct Authority has requested evidence on how regulation in the social investment market is working.
In a call for input, the FCA said it was encouraging views on social entrepreneurs’ experiences of raising social capital and the potential risks to consumers.
The FCA said its call for evidence would explore any problems consumers, social enterprises and financial advisers, including crowdfunding platforms, have in encouraging and securing social investment.
The call for input will determine whether changes are made to the requirements for social entrepreneurs or the protection available to consumers, a FCA statement said.
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."
Evidence should be submitted to the FCA by 11 March.