Recognising the importance of maintaining high standards at this crucial stage of the sector’s growth, the new measures require P2PFA platforms to publish debt data to a common standard, make their loan books transparent, and ensure that retail investors are on a level playing field with institutional investors.
The new principles supplement and reinforce the FCA’s formal regulatory regime, and come as new figures from the P2PFA show a further doubling in consumer, small business and property lending in the last year.
Commenting on the new rules, Christine Farnish, Chair of the P2PFA said:
“With almost £2 billion of new lending in 12 months, it’s important that the P2PFA continues to set standards of good practice in the sector. Consumers can be confident that they are dealing with responsible platforms when they see the P2PFA logo.
“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 enuring 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.”
