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
The deadline is 27th October 2018.
Photo by Joanna Kosinska on Unsplash