Following the Financial Conduct Authority’s (FCA) publication: ‘A review of the regulatory regime for crowdfunding and the promotion of non-readily realisable securities by other media’,
Christine Farnish, Chair of the P2PFA, said:
“The FCA’s review of the peer-to-peer lending industry and equity crowdfunding industry comes at an appropriate time. While I am encouraged to see growth and the wider benefits delivered through our sector, we must remain vigilant to the wider challenges too.
“The report is correct to highlight incidences of where companies have misled customers and the FCA is right to take a tough line as this could bring the whole sector into disrepute.
“The P2PFA sets out a strict set of rules within our own membership in order to promote high standards and consumer protection. This includes high standards of transparency by providing clear, balanced and fair information to all customers. Any member does not abide by these rules faces expulsion.”
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Notes for Editors
About the P2PFA:
The Peer-to-Peer Finance Association is a UK trade body that maintains Rules and Operating Principles that must be followed by all Member organisations to protect the interests of all their consumer and small business customers. The P2PFA publishes quarterly figures showing industry data and the cumulative lending. On April 1 2014, peer-to-peer lending became regulated by the Financial Conduct Authority.
The P2PFA’s current membership includes Funding Circle, RateSetter, Zopa, ThinCats, LendInvest, Madiston LendLoanInvest, MarketInvoice, Lending Works and Landbay.