The Financial Conduct Authority (FCA) has issued guidance to crowd funders- very importantly and most recently, to Peer-to-Peer lenders. P2P lenders need to be paying better attention to the disclosures that they are providing instead of “cherry picking” information to advertise their benefits and hide their risks to consumers, using ultimately deceiving disclosures.
Though the FCA only operates in the United Kingdom, this is a clear sign that the industry and government regulators in the UK are paying very close attention to the Peer-to-Peer lending space, as much as they are here in the US. The bottom line: whether you operate in the US or the UK, regulators are scrutinizing disclosures. (See the FTC's recent updates to their .com disclosures guide).
If you are a Peer-to-Peer platform, lender, or a company that markets for them, reach out for more information on PerformLine - this is exactly the type of risk that our leading edge compliance monitoring platform, PerformMatch, readily mitigates.