Peer-to-peer Finance Market Launches Self-regulatory Body
UK peer-to-peer (P2P) lending sites Zopa, Funding Circle and RateSetter have set up the Peer-to-peer Finance Association (P2PFA) a new trade body tasked with ensuring the sector maintains high minimum standards of protection for consumers and small business customers. In Britain this year, P2P finance will account for more than £100m of loans to individuals and small businesses.
As new financial regulatory structures are put in place by the government over the next 18 months, the P2PFA will work to ensure that the new rules will include effective regulation for the P2P finance market.
Giles Andrews, chief executive officer (CEO) of Zopa, will act as the committee’s initial chairman. Andrews said: “We are very pleased to be taking this significant step in the evolution of this new and exciting sector. The association recognises that this fast growing market will benefit from the high standards that the association has laid down and will police among its members.”