Tue, Dec 17, 2019

Mark Turner Discusses New Peer-to-Peer Regulations with Peer2Peer Finance News

In an article in Peer2Peer Finance News, Mark Turner, Managing Director in Duff & Phelps’ Compliance and Regulatory Consulting practice, breaks down the steps peer-to-peer (P2P) lending firms need to follow when constructing a formal plan to comply with both new P2P and Senior Managers and Certifications Regime (SM&CR) regulations.

On December 9, 2019, the Financial Conduct Authority introduced two sets of regulations for P2P firms to comply with. The objective for the P2P-specific regulation is for firms to protect investors and maintain clear governance structures, using a formal plan to make informed decisions and highlight that the firm’s capital is at risk.

The SM&CR intends to hold individuals accountable for their actions. This would require recording formal identification and assignation of key responsibilities. In the case of any misconduct, the regulator will act on those accountable for failure of prevention. 

These regulations have been created to benefit the finance sector by promoting growth and longevity in the industry to continue to appeal to retail investors. 

Read more here.