The Peer-to-Peer Finance Association (P2PFA) has welcomed the Financial Conduct Authority‘s (FCA) regulatory approach to crowdfunding over the internet, and the promotion of non-readily realisable securities by other media.
In April, peer to peer lending will become fully regulated by the FCA. This is welcomed by the sector and is something the P2PFA has actively lobbied for.
Christine Farnish, Chair of the Peer-to- Peer Finance Association, said:
‘We are pleased that the FCA is taking a proportionate approach to the regulation of peer to peer lending, in line with its competition and consumer protection objectives. Today’s statement strikes the right balance between promoting innovation whilst not exposing consumers to significant risk.
“Peer to peer lending is a good news story for UK consumers and its growth should be encouraged. It is however important that all players in this new market operate responsibly. Formal regulation of the sector by the FCA should help ensure that this happens.”
The P2PFA confirmed last week that over £1bn of funds have now been lent on peer to peer platforms in the UK. The sector more than doubled in size in 2013 and continues to offer attractive rates and excellent customer service to both lending consumers and to borrowers.
The P2PFA represents over 95 per cent of the alternative financial services market in the UK including peer to peer lending to consumers and businesses and invoice finance funding for small businesses. The P2PFA’s membership currently comprises: Zopa, RateSetter, Funding Circle,Thin Cats, LendInvest, Madiston LendLoanInvest, Wellesley & Co andMarketInvoice.. The P2PFA requires members to operate by a strict set of rules in order to promote high standards of conduct and consumer protection.