UKCFA launches 36h group
Since 2013, the UK Crowdfunding Association has represented the interests of Equity and Peer to Peer Lending (P2PL) firms. Recent growth in members and the need to coordinate responses to CP22/2 has seen the association create a 36h subgroup that unites P2P Lending members into a dedicated subgroup. Named after Article 36H of the Financial Services and Markets Act 2000.
This group meets once a month to discuss; best practices, lobbying activity, horizon scanning, data analysis, and more, with a specific focus on P2PL. The discussion feeds into the wider UKCFA meetings, which cover a wider spectrum of matters, not all of which are relevant to P2PL platforms.
Founder members include:
- Medici Legal
- Simple Crowdfunding
- Sourced Capital
Founder supporters include:
- Legal Alternative
The group is preparing a response to CP 22/2 that aims to position P2PL as a maturing fintech sector. The Post Implementation Review introduced by the FCA in December 2019 has helped to ‘raise the bar’ making it harder for failures to reoccur. Owing to increased regulation, it is important that consumers appreciate the value created, in the form of improved risk mitigation and transparency.
Now that P2PL has been through a recessionary period and a phase of ‘regulatory hardening’ we hope that it can appeal to Independent Financial Advisors as well as Discretionary Fund Managers.
Part of our objective is to help position P2PL as a more mainstream product as it matures. P2PL uses online processes to create a competitive advantage over traditional financial firms. “Our group allows us to communicate better with industry stakeholders as well as to better organise responses to consultation papers.” says Daniel Rajkumar of rebuildingsociety.com ltd.
To learn more about the work the UKCFA is doing, or to become a member or supporter, visit www.ukcfa.org.uk or email firstname.lastname@example.org.