As part of a continuing review of its Operating Principles, the Peer-to-Peer Finance Association (P2PFA) has made a revision to improve the accessibility of performance data published on member platform websites.
The Operating Principles, to which all platforms commit, ensure that members deliver high standards of practice. The amendment is being made to Operating Principle 3.5, and will require that platforms either continue to publish their entire loan book, or provide a detailed breakdown of loans in their overall loan book to enable a consumer to be informed about the nature and number of loans of different descriptions presently originated through the platform according to standards to be approved by the P2PFA Board.
With the growth achieved in peer-to-peer lending, we need to consider how best to configure the P2PFA’s requirements to make platform disclosure requirements meaningful for all investors. The loan books of the largest platforms are now of such a magnitude that their continued accessibility for a large number of investors is of questionable value. This amendment maintains transparency but ensures that it is delivered in an accessible and meaningful way.
The revised text of the P2PFA’s Operating Principle 3.5 is amended to read: ‘Platforms undertake to (a) publish their full loan book, which is a loan-by-loan view of the portfolio of loans originated through the platform or (b) publish on their website a detailed breakdown of loans in the overall loan book such as would enable a consumer to be informed about the nature and number of loans of different descriptions presently originated through the platform to meet standards approved by the P2PFA Board’.