This morning every P2P platform received a Dear CEO letter from the FCA, stating that platforms should not facilitate loans to a party who lends those monies onwards, unless that party is authorised for accepting deposits.
Gillian writes that “the Dear CEO letter refers to a few exemptions to accepting deposits but it also flags that the FCA does not think these will be available to onward lenders borrowing from P2P platforms, other than for very infrequent relending. In short – not all two-tier lending will be subject to the limits announced by the FCA; the focus of their attention is firmly on situations where onward lenders are extending credit on the basis of what is already borrowed money.”
She then goes on to suggest the practical steps P2P platforms can take to strengthen their position alongside each of the FCA’s four key steps.
This information is necessarily of a general nature and doesn’t constitute legal advice. This is not a substitute for formal legal advice, given in the context of full information under an engagement with Bates Wells.
All content on this page is correct as of February 28, 2017.