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HOW LOW CAN YOU GO?
P2P versus the base rate
HOT PROPERTY
>> 18
Delving into development finance
German P2P blogger Lars Wrobbel gives his top picks >> 16
ISSUE 78 | FEBRUARY 2023
P2P platforms reaffirm commitment to retail investors A SWATHE of peer-topeer lending platforms have reaffirmed their commitment to retail investors, following the recent departure of two major players from the space. Assetz Capital, which was the biggest P2P platform, announced its plans to wind down its retail loan book in December, blaming rising bank savings rates for making its product uncompetitive. ArchOver exited the P2P market last month, citing costs,
regulation and economic volatility as the factors behind its decision. But there are plenty of platforms who are
still cheerleading the role that retail investors can play in P2P. Louis Schwartz, chief executive of Loanpad,
said that his platform “is fully focused on retail investors, and we do not have any plans to change that.” His comments were echoed by Mike Bristow, chief executive of CrowdProperty, who said that his platform is “absolutely committed” to retail investors, and George Huntley of The Money Platform who said "experienced retail investors are an important part of our investor mix". “There is still a market for retail investors; >> 4
FCA chastises firms on risk warnings THE CITY watchdog has cracked down on platforms that were not complying with the new risk warning rules, Peer2Peer Finance News understands. The Financial Conduct Authority (FCA) wrote to trade bodies on 22 December, saying they had been reviewing compliance with the new risk warning rules
which came into effect on 1 December and that so far compliance rates had been poor. The regulator then contacted firms directly where they thought their risk warnings did not meet standards, requesting immediate action. Peer2Peer Finance News knows of one platform which
received an email from the FCA on 11 January, requesting a couple of changes which the platform made promptly. The FCA declined to comment. The new risk warnings are part of the FCA’s stricter rules on the marketing of highrisk investments. The regulator created a
bespoke risk warning for P2P following industry feedback, updating the wording to say that investors could lose money, rather than lose all of their money. The FCA said it will look at whether any further differentiation of the risk warning is needed in its second phase of work planned for next year.