Firm was given full FCA authorization at the beginning of 2017 and expects the IFISA launch to add to high current demand on the platform; says it will target financial advisers with the new offering; the lender has originated over GBP130 million ($169 million) since launching in April 2016; it focuses on secured property loans with conservative loan to value ratios of approximately 60%. Source
The Financial Conduct Authority (FCA) is proposing that they include P2P platforms in the review of the high cost credit industry; the city watchdog said in a release that there is currently a gap in the regulations for P2P; according to the watchdog this means creditworthiness requirements will be enacted when there is a "significant increase in the amount of credit or the credit limit under a P2P agreement"; the FCA explained further changes could come after this initial review period ends on October 31; John Coley, financial services risk director at PwC, explained to Peer2Peer Finance News, "The FCA has published proposals that potentially have a significant impact on firms operating in the consumer credit sector, these include proposed changes for assessing creditworthiness, feedback on its rules limiting so-called payday-loans, and insights into its continuing work into the motor vehicle finance sector." Source
The UK's Financial Conduct Authority (FCA) released a discussion paper on blockchain that looked to better understand the new technology and how it can be used in financial services; key takeaways from the paper include the ability to cut costs and remove certain back office operations to streamline processes and increase the speed of reconciliation; while there are many potential benefits, the FCA still wants to ensure the risks don't outweigh the benefits; the FCA is also looking at how they might regulate blockchain, they typically regulate the application of technology but to ensure what they are calling "sensible development" they might consider regulating the actual ledger technology. Source
Innovate Finance and the Financial Conduct Authority have published a preview report on the UK Fintech Sandbox with a full report planned for May 2017; the preview report provides insight on the benefits of fintech sandboxes and how they can promote innovation while also helping to facilitate regulation. Source
UK peer-to-peer lender FundingSecure is a pawn broker providing loans against secured assets including jewelry, property, classic cars and fine art; its representative APR for borrowers is 35.4% and it markets interest of 16% annually for investors with a minimum investment of 25 British pounds; with the FCA approval it plans to offer IFISAs in the next two months. Source
P2P lenders in the UK will be required to give information to investors on loan performance; the new measure is expected to be announced this year with implementation not likely until mid-2018; both information on delinquent loans and due diligence were included in the FCA's interim consultation paper; the latest review by the FCA is the second in two years. Source
The FCA regulates approximately 56,000 firms in the UK; its 2017/2018 business plan outlines three main objectives: 1) protect consumers 2) enhance integrity and 3) promote competition; the annual business plans shows the FCA's commitment to foster fintech innovation but notes that the sector presents some of the broadest risks; its business plan states it will continue to focus on fintech initiatives such as Project Innovate and sandbox development; the FCA also plans to actively engage with international regulators for growth of the sector as well; the entire business plan can be found here. Source
The Financial Conduct Authority's Director of Strategy and Competition Christopher Woolard has reported some concerns over fintech regulations globally; in a speech at the Innovate Finance Global Summit in London, Woolard specifically discusses fintech sandboxes noting concerns about establishing them before any government regulatory standards are in place and suggesting that countries institute some guidance before introducing sandbox initiatives; the UK has been a leader in sandbox innovation and the country plans to publish a full report in May on its first sandbox initiative. Source
The UK online lender was launched with a focus on secured aviation lending and has expanded to other types of transactions including secured capital equipment and property lending; it says the authorization will help it to expand and further concentrate efforts on its technological development; the firm has reported an 850% increase in loan volume in the last year; the firm has plans to launch in Australia and also expand to other regions. Source
P2P commercial real estate lender Relendex has received authorization from the Financial Conduct Authority; the platform provides secured commercial property loans through its P2P marketplace lending platform and now plans to seek the offering of innovative finance individual savings accounts for its investors; in comments regarding the authorization, Michael Lynn, the firm's founder and chief executive officer said, "FCA full authorization marks a fantastic start to 2017 for the Relendex team and platform which will further encourage and facilitate investment in commercial property from both our UK and foreign investors." Source