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PS19/14: Final Rules for P2P and Crowdfunding Platforms Published

FCA publishes PS19/14: Final Rules & Feedback for P2P & Crowdfunding Platforms

10th June 2019

The FCA have now published feedback and final rules for Loan-based peer-to-peer (P2P) and investment-based crowdfunding platforms in Policy Statement PS19/14.

PS19/14 summarises the feedback received to the FCA’s Consultation CP18/20 and lays out the final policy positions the regulator has reached as a result. The detail of final rules to be implemented are also detailed whereby the FCA is introducing a package of rules and guidance to improve standards within the sector.

In summary, the FCA plans to:

• Introduce more explicit requirements to clarify what governance arrangements, systems and controls platforms need to have in place to support the outcomes they advertise. 
• Strengthen rules on plans for the wind-down of P2P platforms. 
• Apply marketing restrictions to P2P platforms, designed to protect new or less-experienced investors. The FCA has also clarified the practical implication of these new rules as they apply to P2P agreements. 
• Introduce a requirement that an appropriateness assessment (to assess an investor’s knowledge and experience of P2P investments) be undertaken, where no advice has been given to the investor. The FCA has also provided guidance on what the assessment should include.
• Set out the minimum information that P2P platforms need to provide to investors.  
• Apply the Mortgage and Home Finance Conduct of Business sourcebook (MCOB) and other Handbook requirements to P2P platforms that offer home finance products, where at least one of the investors is not an authorised home finance provider.

P2P Platforms will be required to implement these changes by 9th December 2019, however the application of the Mortgage and Home Finance Conduct of Business sourcebook (MCOB) and other Handbook requirements will apply to P2P platforms that offer home finance products will apply immediately (from 4th June 2019)

Firms that are affected by the final rules and guidance detailed in PS 19/14 must now consider what changes will need to be made to ensure the rules can be implemented as as required by these commencement dates.

Related Reading:

• Advising on P2P Agreement Permissions
• Crowdfunding Rules - Interim Feedback
• Crowdfunding & Client Money Rules
• Crowdfunding & Peer-to-peer lending (P2P)
  
  

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