The Sunday Times looks at the Financial Conduct Authority’s plans to crack down on peer-to-peer lenders. The regulator has been consulting on the industry since 2016 and, in a paper published last year, it warned that investors were not always given clear or accurate information, which could lead to the purchase of unsuitable products.
The FCA has suggested that P2P be marketed only to high-net-worth or sophisticated investors, or those who have received expert advice. In addition, it has proposed that loan-based crowdfunding, as it is also known, be limited to 10% of a person’s portfolio.
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