Actually, while I must admit to not being an expert in UK financial law and regulations, I did a quick research before saying that their ignorance of the law is not excused, and the regulations that got SMS under the FCA scrutiny (namely, the Financial Services and Markets Act and the Conduct of Business Sourcebook chapter 4.12) predate pCARS's crowdfunding campaign.
Of course this has little to do with me being unimpressed by Slightly Mad's business scheme, and more with me having to politely disagree with what I believe was the intention one of your statements.
It's a shame that they adopted such a shoddy way of doing businesss, because at SMS they seem to have their heart in the right place. They're the only developer in this line of business that decided to not compromise and instead tried to deliver the most complete experience possible, tailored to the community's demands. Even if their approach doesn't work all that well, it's commendable that they decided to do something slightly different, at least.