P2PFA Membership Criteria 2014.
The P2PFA encourages applications for membership from businesses that meet the following criteria:
P2PFA Members must;
- Undertake debt based retail financial services business in the UK by means of an electronic platform
- Have been transacting business in the market for at least 6 months
- Use lender funds to provide loan funding of any type to consumer or business customers
- Preferably, secure some lender funds from retail consumers
- Operate to a significant extent by means of direct loan contracts between borrowers and lenders
- Demonstrate high standards of loan underwriting and credit and operational risk management
- Demonstrate high standards of transparency and provide clear, balanced and fair information to all customers
- Comply fully with the P2PFA’s Operating Principles, as amended from time to time, and commit to adhere to high industry standards for the peer to peer finance sector agree to work with other members to promote the sector represented by the P2PFA as operating to high standards at the lower end of the alternative finance (or crowdfunding) risk spectrum.
Applications should be in the form of a covering letter stating why the business wishes to join the P2PFA, how it meets the membership criteria and attach documentation showing how the business complies with the P2PFA’s Operating Principles. The Operating Principles set out the key requirements for the transparent, fair, robust and orderly operation of peer-to-peer finance platforms and cover:
1) Senior management;
2) Minimum operating capital requirements;
3) Segregation of participants’ funds and auditing of the segregated bank account;
4) Appropriate credit and affordability assessment;
5) Appropriate anti-money laundering and anti-fraud measures;
6) Clear rules governing use of the platform, consistent with these Operating Principles;
7) Marketing and customer communications that are clear, fair and not misleading;
8) Secure and reliable IT systems;
9) Fair complaints handling; and
10) The orderly administration of contracts in the event a platform ceases to operate.
The Peer-to-Peer Finance Association is run by a Management Committee, made up of one representative from each member. Christine Farnish is the Committee’s independent Chairman. The P2PFA Management Committee will consider all applications on their merits. Successful applicants will be notified after review of their application at the P2PFA Committee meeting and eligible to pay the yearly membership fee.