Giving advice on investments in peer-to-peer (P2P) loans will soon be an FCA regulated activity (our recent blog about this is here). So the FCA is updating its handbook.
In its consultation paper “CP16/5**: Handbook changes to reflect the introduction of the Innovative Finance ISA and the regulated activity of advising on peer-to-peer agreements“, of 2 February 2015, the FCA proposes to:
- Require firms to comply with its suitability rules when they make a personal recommendation about a P2P loan;
- Ban the payment or receipt of commission in relation to advice on P2P loans;
- Require firms to ensure that those who give advice on P2P loans are appropriately supervised, and competent and qualified to do so; and
- Give consumers who receive advice on P2P loans access to the Financial Ombudsman Services and the Financial Services Compensation Scheme.
The consultation closes on 15 February 2016, less than two weeks after it began. Comments can be submitted using the online form (here) or by e-mail to: firstname.lastname@example.org