The Financial Conduct Authority is proposing new rules for those that offer cash savings; under the plans, financial institutions will...
The UK's Financial Conduct Authority (FCA) released a discussion paper on blockchain that looked to better understand the new technology and how it can be used in financial services; key takeaways from the paper include the ability to cut costs and remove certain back office operations to streamline processes and increase the speed of reconciliation; while there are many potential benefits, the FCA still wants to ensure the risks don't outweigh the benefits; the FCA is also looking at how they might regulate blockchain, they typically regulate the application of technology but to ensure what they are calling "sensible development" they might consider regulating the actual ledger technology. Source
The Financial Conduct Authority released its interim update on crowdfunding rules last week; the update reported that the regulator would be scrutinizing numerous factors pertaining to P2P lending in the UK; one such factor, discussed by the Financial Times, includes the disclosure of loan performance; the introduction of provision funds has caused this disclosure to potentially be misleading for investors; in some cases platforms use provision funds to cover defaults for borrowers; this action could potentially lead to better than actual loan performance on the loans. Source
The Financial Conduct Authority (FCA) removed 12 UK crypto firms from its registration list, leaving only five companies with a temporary registration status.
In their recently completed review, the Financial Conduct Authority (FCA) was particularly worried about some platforms using customer money to buy loans from rival platforms; FCA CEO Andrew Bailey explained that platforms don't have enough loans to present so in turn they use investor money to buy up loans from a rival platform; this is worrisome as investors are not being told the correct risks; Mr. Bailey did not disclose any platforms by name and said the issue was not widespread but worth keeping an eye on. Source
The Financial Conduct Authority's Director of Strategy and Competition Christopher Woolard has reported some concerns over fintech regulations globally; in a speech at the Innovate Finance Global Summit in London, Woolard specifically discusses fintech sandboxes noting concerns about establishing them before any government regulatory standards are in place and suggesting that countries institute some guidance before introducing sandbox initiatives; the UK has been a leader in sandbox innovation and the country plans to publish a full report in May on its first sandbox initiative. Source
P2P lenders in the UK will be required to give information to investors on loan performance; the new measure is expected to be announced this year with implementation not likely until mid-2018; both information on delinquent loans and due diligence were included in the FCA's interim consultation paper; the latest review by the FCA is the second in two years. Source
The Financial Conduct Authority (FCA) has requested that P2P lenders not lend to each other through industry network lending; the request comes as the regulator continues to increase its oversight and understanding of the industry; in the FCA's report it says that the industry network lending could be in violation of rules that require deposits for such transactions. Source
The Financial Conduct Authority (FCA) has released their annual Sector Views report; it warned of high-risk retail investments, calling out...
UK peer-to-peer lender FundingSecure is a pawn broker providing loans against secured assets including jewelry, property, classic cars and fine art; its representative APR for borrowers is 35.4% and it markets interest of 16% annually for investors with a minimum investment of 25 British pounds; with the FCA approval it plans to offer IFISAs in the next two months. Source