UK Peer-to-Peer Finance Association: What They Do (Deck)

Peer2Peer Financie AssociationThe 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:

  1. All members have to maintain a minimum amount of funds to maintain stability
  2. Members have to keep their clients’ funds separate to their own
  3. Members have to lend responsibly and manage credit risk
  4. Transparency
    1. Members have to communicate to their clients: •  •  •  •  Likely default rates Terms of the product Risks and likely returns Fees and charges
    2. Each member must ensure that clear, fair and not misleading information is published on their website
  5. Members have to make sure their IT systems are secure and reliable
  6. Members must have a clear complaints handling policy
  7. 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]

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