FCA launches post-implementation review of peer-to-peer lending
Last week, the Financial Conduct Authority (FCA), which regulates the financial industry – including peer-to-peer lending – in the UK, announced a post-implementation review of the current rules in place for peer-to-peer lending.
The FCA began regulating peer-to-peer lending in 2014, and it is standard practice for rules of this kind to be reviewed after two to three years.
RateSetter and other established marketplace lending platforms are fully regulated, and were given interim authorisation when the FCA started overseeing the industry; like other platforms, we’re working towards getting full authorisation, and in the meantime, firms are expected to comply fully with the rules which have been put in place.
The post-implementation review essentially means that the FCA will check that the rules it has laid down are effective and proportionate in practice.
The review takes the form of a consultation, and once the FCA has received responses, it will decide whether further action is needed.
Rhydian Lewis, CEO of RateSetter, commented:
“This review is a fantastic opportunity to look at the issues that really matter and put beyond doubt the case for opening up direct access to investment returns from the asset class of loans.”
“Peer-to-peer investing is becoming very popular and it makes sense for the FCA to ensure it is appropriately regulated. We look forward to continuing our active and positive engagement with the FCA during the review process.”