Referring to last year’s collapse of Collateral and how it emphasises the need for platforms to have an effective wind-down plan, Dena set out what the FCA expects platforms to put in place to ensure an orderly insolvency process.
Aside from describing the FCA’s four specific requirements, Dena also commented on the possible effects of P2P platform insolvency on market confidence. She explains that “another high-profile insolvency could certainly affect confidence, but the circumstances around the insolvency will affect the degree, if any, to which this confidence is dented. If customers see signs that the management of a loanbook can continue successfully, even with the insolvency of the original P2P firm, this could improve confidence in the sector.”
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All content on this page is correct as of March 21, 2019.