Regulator announces peer-to-peer lending rules
Yesterday the Financial Conduct Authority published the final rules for peer-to-peer lending. This will formally kick in on 1st April and follows a consultation over the last four months to ensure proportionate regulation to protect both investors and borrowers, whilst also enabling the industry to continue to flourish.
Funding Circle has been lobbying for regulation alongside other members of the Peer-to-Peer Finance Association for a couple of years now, as we felt it was very important for our customers to be properly protected.
As James Meekings, one of our co-founders said yesterday in response to the news: “Peer-to-peer lending is now a £1 billion industry and it is predicted to grow to over £12 billion per year within the next decade. Funding Circle alone is currently facilitating £20 million of loans every month so it’s only right that a industry of this size becomes regulated, giving consumers even more confidence that peer-to-peer lending is here to stay.”
The introduction of proportionate regulation is a step-change for the peer-to-peer lending industry and we believe it will cement our position within the wider financial landscape.