On the watchdog’s website, the Financial Conduct Authority mentioned other elements that Peer to Peer platforms must abide by which includes notifying lenders on the financial stance of borrowers.
Peer to Peer (P2P) lenders are already regulated by the Office of Fair Trading but this responsibility will be passed over to the FCA on the 1st April 2014.
As founder of eMoneyUnion, the UK’s only secondary market P2P outlet, Lee Birkett hopes to seize the capital on this ever expanding sector. “Now we have clearer regulatory landscape, we will be opening up the platform to select intermediaries.”
Birkett states that he does not expect any vast changes on their daily activities. He also confirms that eMoney Union will use the same OFT license numbers when they move under the FCA.
The FCA also infers that other key elements to the regulation will cover: presenting the loan agreements to both parties involved, collecting debts and providing credit information services.
The FCA plans to publish a consultation paper this October that further details how they aim to police the sector within the regulation of consumer credit from April 1 next year.
Some sources estimate that P2P platforms will need authorisation from the FCA which can take up to a maximum of six months.
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