The previous blog reviewed what we've learned since we started and how this has translated into a better proposition for borrowers. Below, we look at how the regulator is increasing investor protection, and what we’re doing to implement this. Next, we’ll summarise our journey to date and how we've developed the lender proposition.
The regulator of peer-to-peer (P2P) lending has been tightening up on regulating the sector.
The Financial Conduct Authority (FCA) published a new set of rules for the industry in June, which will be implemented by 9 December this year.
“These changes are about enhancing protection for investors while allowing them to take up innovative investment opportunities,” according to Christopher Woolard, Executive Director of Strategy and Competition at the FCA.
Much of what was proposed in the FCA recommendations following its consultation reflects what is established good practice in the P2P lending market, in which the UK is a global leader. When announced, the news was welcomed by ourselves and the Peer-To-Peer Finance Association (P2PFA), the self-regulatory body for the sector. The P2PFA requires the very best practices of the eight leading platforms who are members, including CrowdProperty.
The principles behind the requirements have always been at the heart of CrowdProperty’s operating practices and we will be further implementing some of the specific requirements in advance of the 9 December deadline.
The FCA’s conclusions centred around a few key areas. We’ve listed some of the most important ones below, along with what CrowdProperty is already doing to safeguard our lenders’ interests:
The summary of the FCA’s consultation findings, plus a link to the full PS19/14 Policy Statement can be found here.
P2PFA Chair Paul Smee commented: “We are pleased that the FCA recognises the significant and positive impact which peer-to-peer lending has on the economy, as the sector becomes a mature feature of the UK financial services landscape; and we consider that overall they are proposing a proportionate way forward for regulation.”
CrowdProperty will be making various changes over the coming few weeks, in advance of the 9 December deadline, so please keep an eye out for further communications.
If you have any questions, don’t hesitate to ask and as always, we very much welcome your feedback.
Find out more at www.crowdproperty.com.