‘The increased focus and oversight in the peer to peer sector has to be welcomed. The peer to peer sector has grown exponentially over the past five years, from small start-ups we now have large established financial institutions. The sector has benefitted from the 'light touch' approach previously adopted by the FCA but noting the current and forecast scale of these institutions it is only right that the FCA looks to bring the sector in line with existing regulations and best practice.
‘There is a real risk that in the absence of the FCA regularising the sector, practices could emerge which undermine the position of investors. Any fall-out could fundamentally undermine our growing FinTech sector and undermine the UK’s reputation for financial probity.’