Peer Funding, a new entrant into the p2p and marketplace lending world has been granted full permission to operate a lending platform by the UK financial regulator, the Financial Conduct Authority [FCA], according to a statement by the firm.
Of the scores of platforms that offer investors and borrowers access to the mushrooming p2p and marketplace lending sector the majority hold ‘interim’ operating licenses while their full approval is being processed. This is due to a quirk in the industry’s growth whereby it was formerly overseen by the Office of Fair Trading.
Full authorisation has a wide range of potential outcomes. Most important, many commentators argue, is that it will propel platforms’ new products aimed at Individual Savings Account (ISA) investors to market. After approval companies must submit their products to UK tax authorities to be eligible for the ISA tax-wrapper.
Peer Funding is now one of only a handful of fully authorised peer-to-peer business platforms since the FCA took charge of the sector in April 2014. Unlike many existing platforms, Peer Funding has not been trading under interim permission and has been granted this authorisation after completing a full application process.
This authorisation allows Peer Funding to launch a new and differentiated platform in the UK peer-to-peer business debt funding sector in the autumn, 2016.
Peer Funding will investors and borrowers business loans between 6 - 60 months, secured business loans between 12 – 60 months, ‘selective’ invoice financing and debtor financing between 30 - 120 days as well as property bridging loans between 3 - 12 months as well as property development loans 3 - 18months
Peer Funding’s risk and compliance director, Roger Smith, said: “Gaining full authorisation from the FCA to operate a p2b platform is a significant milestone and achievement for Peer Funding Limited. It has taken considerable effort to get to this stage.
“Unlike many of the existing players in this market who are trading under interim permission, the service offering from Peer Funding has been built from the outset with regulation in mind giving the company a solid base from which to operate and setting up a well-defined framework from which to grow.”
“Peer Funding welcomes regulation and the integrity to it brings to our market. We look forward to bringing our wide ranging products and compelling service to both business borrowers and investors alike.”
Peer Funding is planning to soft launch in September. They are a currently exhibiting an ‘early bird’ investor offering, details can be found here.