P2P & Debt Based Securities

Recent FCA publications, PS19/14: Loan-based (‘peer-to-peer’) and investment-based crowdfunding platforms, feedback to CP18/20 and final rules, outlined the regulators’ concerns that firms needed to strengthen their governance arrangements, systems and controls platforms, and have information in place to support the outcomes they advertise.

To promote P2P in becoming mainstream, the FCA are more likely to support changes to their rules if TISA can help firms show that consumers are being provided with necessary information about a platform’s services and charges helping them make informed decisions, with clear and accurate information about the investment risk and the suitability of an investment.

Benefits to consumers

WIDER CHOICE OF ALTERNATIVE INVESTMENTS MADE AVAILABLE FOR CONSUMERS

BETTER UNDERSTANDING OF RISKS ASSOCIATED WITH THE PRODUCT

A MORE INFORMED DECISION ON THE SUITABILITY OF THE PRODUCT FOR THE APPROPRIATE TYPE OF INVESTOR

LESS CONSUMER DETRIMENT

ONLY SOLD TO ‘QUALIFYING CONSUMERS’

Benefits to industry

DEVELOPING INDUSTRY IMPLEMENTATION AND GOOD PRACTICE APPROACHES THAT HELP FIRMS IDENTIFY WHAT THEY NEED TO ADDRESS, THIS SHOULD REASSURE THE FCA THAT THE INDUSTRY IS HELPING ITSELF AND PROVIDING A ‘CENTRAL POINT OF CALL’ WHEN ISSUES ARISE

CONSISTENT APPROACH BY INDUSTRY RAISES STANDARDS, IMPROVES COMPLIANCE, AND IMPROVES OUTCOMES FOR CUSTOMERS

Benefits to UK economy

MARKET CONFIDENCE IN THE FINANCIAL SERVICES ALTERNATIVE INVESTMENTS MARKET (P2P)

WIDER AND DIVERSE CHOICE OF INVESTMENTS FOR CONSUMERS

PROVISION OF INNOVATIVE FINANCE ISA MARKET DATA ON MARKET SIZE AND OPPORTUNITIES HELPS GET HMT SUPPORT FOR TACKLING REGULATORY BARRIERS

P2P & Debt Based Securities Working Group

Purpose

The P2P & Debt Based Securities Working Group will work cohesively across the whole P2P industry to consider issues regarding standards and regulations.

Areas of focus

  • Constructive engagement with the FCA, HMT and HMRC.
  • Standard terminology.
  • Robust understanding of risk and how P2P compares to other investments, and subsequent promotion.
  • Development of IFISA reporting.

Jeffrey Mushens, Technical Policy Director leads on this work at TISA

Participating member firms

CMS Cameron McKenna Nabarro Olswang LLP

Folk2Folk

Funding Circle

Goji

Intelligent Partnership

Investment Funds Direct Ltd (IFDL)

Model Office

MoretoSIPPS

Personal Investment Management & Financial Advice Association (PIMFA)

RateSetter

Return to Savings & Investment Groups & Resources

Go to

If you are a TISA member, and would like to get involved with the P2P & Debt Based Securities work, please get in touch

Go to

Upcoming Related Events and Training