The FCA will now have turned their full attention to p2p lending, which is set to be fully regulated in April. The P2PFA, and indeed many of the major platforms, have actively lobbied for this and welcome the advent of a tighter regime.
Christine Farnish, Chair of the P2PFA, commented:
‘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 represents over 95% of the alternative finance platforms in the UK – including peer-to-peer consumer lenders, peer-to-business lenders and invoice funders. The UK crowdfunding platforms are represented by a separate entity in the form of the UKCFA.
The AltFi Summit discussions revealed a clear appetite for regulation among AltFinance platforms. All eyes will be on the FCA come April.