P2P sector blasts "disappointing" plans for new consumer investment rules

Industry leaders have slammed proposed new consumer investment regulations, warning that they may push yield-seeking investors into the unregulated space.

The UK Crowdfunding Association (UKCFA) has responded to the Financial Conduct Authority’s (FCA) call for input on consumer investments on behalf of a number of peer-to-peer lending platforms and crowdfunding firms.

It has raised concerns around the FCA’s proposals, which suggest that investment products should be simplified, while higher-risk products should be labelled with traffic-light colour coding, in an effort to better communicate risk.

The UKCFA has warned that any effort to further restrict investor options in the P2P lending space could result in a binary choice between cash-like, low-risk products, and high-risk investments which are marketed in a way that is intended to keep retail investors at bay.

Bruce Davis, founding director of the UKCFA, said that the P2P sector has already implemented a number of regulatory measures which have improved the safety and transparency of consumer investments. He has written on behalf of the UKCFA to express his disappointment in the new proposals.

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Source: P2P sector blasts “disappointing” plans for new consumer investment rules | Peer2Peer Finance News