In the UK, new rules are now in place to protect retail investors in peer-to-peer lending. The new rules from the Financial Conduct Authority (FCA) are designed to prevent harm to investors and help the industry grow in a more sustainable way. Many industry players are welcoming the new rules:

“Stronger regulation with harmonised standards means that people can invest in P2P with greater confidence than ever.  P2P will now become a logical choice for any individual or financial adviser building an investment portfolio diversified across different asset types,” says Rhydian Lewis, RateSetter’s CEO.

In addition, the more rigorous rules also aim to improve risk management, governance, disclosure, marketing and wind-down planning.

“These changes are about enhancing protection for investors while allowing them to take up innovative investment opportunities. For P2P to continue to evolve sustainably, it is vital that investors receive the right level of protection”, Christopher Woolard, FCA, says.



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