According to one compliance expert, the FCA’s decision has meant only 40 per cent of the P2P loans which HM Treasury had intended to be covered by the legislation were actually captured by the regulator’s definition. The regulated activity relating to loan-based crowdfunding is set out in article 36H of the Regulated Activities Order
Gillian comments that “When the Treasury drafted article 36H they were trying to regulate the P2P activity that already existed in the market. The FCA has taken a narrower view, and whether it’s due to unclear drafting or a confusing interpretation this means that P2P firms have had to jump through hoops. There has been a real difference in interpretation between the FCA and the Treasury.”
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 April 13, 2017.