The FCA’s peer-to-peer lending license is the only European regime that brings platforms under regulatory oversight. Bondora (formerly known as isePankur) becomes one of the few platforms to operate under such a license. The provisions with which the Estonian platform will now have to comply are as follows:
A minimum capital requirement
Client money protection rules
Dispute resolution rules
A requirement that Bondora take reasonable steps to ensure existing loans continue to be administered should the firm go out of business
Conduct of business rules relating especially to disclosure and promotions
Pärtel Tomberg, CEO of Bondora, commented on the news:
“The authorisation and regulation are good news for our customers across Europe.
“We are likely the only peer lender outside of UK who obtained this authorisation and this type of regulation is something that we have been looking forward to for a number of years.”
Bondora has operated up to now without a specific license - owing purely to the fact that a suitable regulatory body did not exist. The FCA’s recently unveiled regulations have inevitably met with mixed opinion, but how interesting it is to see a continental platform come to the UK in search of the regulatory measures. The simple fact may be that, while it can’t please everyone, we’re much better off with regulation than without. Will more European platforms follow Bondora’s example?
