On 7 March 2016, the First Delegated Legislation Committee considered the draft Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2016.
Among other things, the Committee highlighted:
- That the Government supported the FCA’s intention to consider whether the remit of the financial services compensation scheme should be expanded to include peer-to-peer lending in 2016. The Government believes it is important for the industry to be regulated and for consumers to be given clear information when they make such investments.
- The reason for the timing difference in bringing the regulation of second-charge mortgages into line with that for first-charge mortgages. The Government said with the European mortgage credit directive coming into force in March 2016, it did not want to disrupt firms and customers excessively by predating regulations that are clearly on their way.
- That, in relation to the provision of advice in relation to the peer-to-peer ISA, the Government will continue to keep this under review in light of developments.