UK Music calls on government for an urgent meeting to prevent a repeat of Pledgemusic scandal

31 July 2019 - Press release

UK Music Deputy CEO Tom Kiehl has called on the Government to take urgent action to prevent a repeat of the PledgeMusic scandal. 

 

The move came as the crisis-hit crowdfunding company was the subject of a winding up order today (Wednesday) at the Royal Courts of Justice. 

 

Hundreds of artists have been left out of pocket by the collapse of PledgeMusic earlier this year with some owed thousands of pounds after it went into administration with major debts. 

 

UK Music attended the hearing at the Royal Courts of Justice today where the Judge granted the order.

 

In a letter (attached) to Business Minister Kelly Tolhurst, Tom Kiehl said: 

 

“Many musicians across the UK relied on crowdfunding website PledgeMusic to deliver payments from patrons, to pay for album recordings and other costs. The winding up of this company represents an entirely unsatisfactory development for the many music fans and creators who have invested so much into projects through this scheme.

 

“I ask you to again consider the merits of a ministerial referral to the Competition and Markets Authority to investigate what went wrong with this case.  

 

“I would also like to ask you to consider taking up the case with the Financial Conduct Authority, which holds responsibility for regulating certain types of crowdfunding, to consider the activities of PledgeMusic and whether there have been any regulatory breaches. 

 

“Furthermore, I would like to ask for a meeting with you to consider further possible Government interventions to ensure the issues which have arisen from PledgeMusic can never happen again.”