...and we were already talking to the FSA
The government has announced that it plans to regulate peer to peer (P2P) Lending.
The P2P Finance Association welcomed the news, saying:
“The Peer-to-Peer Finance Association has provided clarity and protection for consumers and businesses, but we have always strongly believed that introducing proportionate regulation was necessary to enable the sector to continue to flourish. “
Well, we’ve always been convinced of that here at FundingKnight, too.
That’s why our CEO, Graeme Marshall, explained months ago why peer to peer lending is an industry that wants to be regulated,but we also took some more concrete action…
FundingKnight has been talking to the FSA for several months and is well advanced with its application to become FSA regulated for those parts of its activity that fall within the FSA’s regime.
Rather than simply campaign for regulation, FundingKnight took the view that some of P2Ps current processes already fell within the regulatory regime and applied on that basis. We hope to be the first regulated P2P Lender
FundingKnight CEO, Graeme Marshall, commented:
“FundingKnight welcomes the prospect of regulation of crowdlending / peer to business lending. It may be that the news this week relates more to pure peer to peer lending and the extraordinary rates that are being charged to some individual borrowers but, regardless, some clarification and rules would be welcome.
Whereas FundingKnight believes that although matching lenders with business borrowers does not in itself fall to be regulated under the current rules, there are many peripheral activities that are less clear and so Government clarification and regulation would be welcomed. This will also assist with the setting of standards for this new and exciting activity. FundingKnight is seeking authorization for those of its activities that are covered by the Financial Services Authority.
FundingKnight has a team well experienced in financial markets who collectively believe that regulation of this industry will help crowdlending to become recognized as a new model for lenders and borrowers to be matched using the power of an online marketplace. We look forward to participating fully in discussions with the FSA and Treasury concerning forthcoming regulation.”
Whilst we’re not claiming that our discussions with the FSA prompted the Treasury’s response, we’re glad to see that the move towards regulation is now gaining momentum.