The FCA has called for the help of advisers as it launched a probe today into specific rules and policies which could be hindering investment for social purposes.

The FCA wants input from financial advisers recommending social investments and views about the potential risks to consumers investing in this sector.

A consultation will look at how regulation is working in relation to the social investment market.

Social investment is a term used to describe investments where the aim is to provide a wider social benefit, rather than the primary driver being a purely financial benefit to investors.

The FCA said it was a relatively new but growing market. Studies showed that the UK social investment market is currently worth just over £200m, although retail investors currently have a minority stake, the report stated.

The FCA document stated that there were an estimated 180,000 SME social enterprises in the UK, rising to 688,000 if sole traders are also taken into account.

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.”

The FCA has published what it called “a wide-ranging call for input asking for social entrepreneurs’ experience of raising capital”.

Following the call for input, the FCA will consider whether it is necessary to clarify the requirements that apply to social entrepreneurs and the protection available to consumers for social investments.

The FCA asks for comments by 11 March.