Today the UK Financial Conduct Authority (FCA) opened a consultation regarding proposed new rules surrounding peer-to-peer (P2P) lending platforms. This follows the post implementation review that was published in December 2016.
The proposed changes to are designed to ensure:
- Investors receive clear and accurate information about a potential investment and understand the risks involved
- Investors are adequately remunerated for the risk they are taking
- Fair/transparent charges to investors
- Fair/transparent and robust systems for assessing the risk
- Good governance and orderly business practices
- Existing marketing restrictions for investment-based crowdfunding platforms are extended to loan-based platforms
To see the proposals in full (156 pages) and to understand the process for submitting input, visit the FCA website here.
The deadline is 27th October 2018.
Photo by Joanna Kosinska on Unsplash