UKCFA Welcomes FCA Review of Crowdfunding and P2P Lending

The UKCFA welcomes the publication of the long awaited FCA review of crowdfunding and p2p lending and welcomes the further alignment of P2P and Investment Crowdfunding regulation. The process of the review has involved giving the FCA unprecedented access to our customer data and senior managers to examine all elements of the diverse range of businesses which make up this growing and important sector of financial services.

Throughout the process, the UKCFA have emphasised the need for the FCA to enforce and be seen to enforce the rules which govern all investment firms dealing with ordinary peoples’ money to ensure the sector maintains its world leading status in terms of innovation and consumer protection.

We would still emphasise the need for the FCA to improve its use of technology to make monitoring an online sector more effective and efficient and not to rely on the sharp eyes of UKCFA members highlighting examples of poor or even illegal practice in the investment world.

The UK is the model which the rest of the world tries to emulate when it comes to p2p and crowdfunding and we look forward to continue working with the FCA following this review to make sure that the rules and guidance from the regulator provide the right balance of encouraging innovation and ensuring appropriate consumer protection.

In particular over the last two years, the UKCFA, have invited the FCA to run several training sessions with members on best practice in financial promotions and worked closely with policy and supervision teams to make sure we have rules and guidance that work and are workable.

As a sector we are in favour of regulation that promotes healthy competition, customer focused innovation and appropriate consumer protection as the basis for growing a successful sector of the financial services industry.

We look forward to working with the FCA in the coming months to provide member input and feedback.