FCA’S post-implementation review of crowdfunding rules is a chance to ensure appropriate balance of regulation

160708 – P2PFA statement on post-implementation of FCA’s crowdfunding rulesThe Peer-to-Peer Finance Association has acknowledged the announcement of the Financial Conduct Authority’s post-implementation review of crowdfunding rules as an opportunity to ensure an appropriate balance of regulation protecting investors and borrowers, without stifling innovation and competition.

Levels of lending through peer-to-peer platforms in the United Kingdom have grown exponentially during the course of the last ten years – with more than £5.1 billion lent since 2010.

Commenting on the announcement of the Financial Conduct Authority review, the Peer-to-Peer Finance Association Chair, Christine Farnish, CBE, said: ‘Peer-to-peer lending platforms have a proud record of embracing regulation.  The Association’s platforms are committed to the highest standards of business practice – including ensuring that consumers and businesses considering investing or borrowing are fully aware of the risks and rewards of peer-to-peer lending – which are embodied in our Operating Principles.

Reflecting on the Review, she continued: ‘The challenge for this Review will be to make sure that the regulatory regime develops in a way that focuses on the risks to consumers, and any risks to the wider financial system, of peer-to-peer lending. If platforms are to continue to be able to compete with powerful, large incumbents, then the regulator must strike the right balance and ensure that regulation is proportionate to the risks posed’.

She concluded: ‘the growth of peer-to-peer lending has placed this sector firmly in the mainstream of financial service innovation. As an Association, we have always embraced an appropriate level of regulation, and we look forward to contributing authoritatively to the debate’.

Please see link to P2PFA Statement on Call for input for post implementation review of FCA crowdfunding rules ->


Notes to Editors

  1. Peer-to-peer lending involves direct matching of funds between investors and borrowers through an on-line platform. Investors range from retail consumers to institutional investors as well as the government. Borrowers range from consumers, small businesses, property developers and buy-to-let. Peer-to-peer lending platforms are able to match investors and borrowers directly for a fraction of the cost of traditional financial services entities, providing benefits to customers on both sides of the transaction.
  2. The Peer-to-Peer Finance Association was founded in London in 2011 as a self- regulatory body for the sector to promote high standards of conduct and consumer protection. Members of the Association are required to meet robust rules and operating principles for the transparent, fair and orderly operation of peer-to-peer finance.
  3. Peer-to-peer lending platforms have been regulated by the Financial Conduct Authority since 1 April 2014. Arrangements for the regulation of peer-to-peer platforms in the United Kingdom are superior to those in the United States of America, and present less risk than other forms of alternative finance, such as equity-based crowdfunding.
  4. Financial Conduct Authority announcement an be found at:


Robert Pettigrew (Policy & Communications’ Director, Peer-to-Peer Finance Association): e-mail –; telephone: 07771-547462