The UK Peer to Peer Finance Association (UKP2P) is the self regulatory body behind the booming peer to peer industry in the UK. Last year the association’s members experienced a growth rate of 121%. The major industry participants have set about to create some reasonable (in my opinion) guidelines for their members creating a seal of validation giving consumers a bit more confidence and comfort in what they are doing. Some pretty basic requirements to adhere to their rules including:
- All members have to maintain a minimum amount of funds to maintain stability
- Members have to keep their clients’ funds separate to their own
- Members have to lend responsibly and manage credit risk
- Transparency
- Members have to communicate to their clients: • • • • Likely default rates Terms of the product Risks and likely returns Fees and charges
- Each member must ensure that clear, fair and not misleading information is published on their website
- Members have to make sure their IT systems are secure and reliable
- Members must have a clear complaints handling policy
- Each member must make arrangements to ensure the orderly administration of its customers’ contracts in the event that their platform ceases to operate
A presentation created by the P2PFA this past Spring is embedded below.
[slideshare id=31944955&doc=p2pfa-140305094021-phpapp02]
