The new guidelines require the association’s members to publish debt data to a common standard, make their loan books transparent and ensure that retail investors are competing on the same level playing field as institutional investors.
Christine Farnish, Chair of the P2PFA, said: “Our new operating principles set a benchmark of fair dealing and transparency.
“By the New Year, all our members will publish their full loan books, show bad debt losses in a comparable way, and commit to ensuring that retail investors get a fair deal compared with institutions.
“These new measures will help build further consumer confidence, demonstrate our commitment to ethical practice and set a beacon of good practice across the market.”
The announcement came as figures from the P2PFA showed that there has been almost £2bn worth of new lending in the P2P industry over the last 12 months, with consumer, small business and property lending almost doubling.
The new operating principles can be viewed here.
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