The Financial Conduct Authority has issued an update on its rules for the crowdfunding market; the update is based on feedback received since July and its authorization process; seems there will be a number of modifications; some of the key areas for new regulation in P2P lending include disclosure, wind-down plans, mortgage lending standards, cross-platform investment, investment limits, operational risk complexity, marketing promotions, provision funds, money handling standards, regulatory arbitrage, maturity mismatching, investment for institutional investors and liquidity risk for IFISA investors. Source
[Editor’s note: This is a guest post and white paper from Darpan Saini, Co-Founder & CTO at Cloud Lending Solutions. Cloud Lending Solutions will be an exhibitor at LendIt USA 2015 on April 13-15. In this post and attached white paper, he talks about buying vs. building a marketplace platform]
Marketplace lenders have to make some tough decisions, and one of the hardest is to build or to buy. The core ingredient for a marketplace lender is the platform on which they operate and how fast they can get to market. The success of the business is highly dependent on the quality and flexibility of the infrastructure platform. This white paper outlines four key technical areas that need to be assessed by a marketplace to determine whether building or buying their platform will make the marketplace most successful with real life examples included.