Colours. Mast. Nailed. We’re not shy about nailing colours to masts here at LendingCrowd, especially regulatory masts that stand tall and proud. And not those that creak…
The Financial Conduct Authority’s (FCA) regulatory review of the crowdfunding sector in February was welcomed by Edinburgh-based crowdlending platform, LendingCrowd.
The publication, ‘A review of the regulatory regime for crowdfunding and the promotion of non-readily realisable securities by other media’, assesses progress in the crowdfunding market since the FCA took regulatory responsibility for the sector on 1 April 2014.
Stuart Lunn, CEO of LendingCrowd, says: “We welcome the FCA review, which put consumers at the heart of the way crowdfunding organisations are operated. Treating consumer fairly is very important as we continue to grow our new platform in the peer-to-business sector.”
Data from the review relies heavily on information collected by Cambridge University and Nesta, two authority sources of research, which reveal the rapid growth of crowdfunding; the industry topped £1.74bn in 2014, three times the amount the year prior.
The FCA is focused on ensuring that customers are treated fairly, that platforms have appropriate experience and processes, a focus on risk and ensuring that marketing communications meet financial promotion standards.
Christine Farnish, Chair of the P2PFA, says: “The FCA’s review of the peer-to-peer lending industry comes at an appropriate time. While I am encouraged to see growth and the wider benefits delivered through our sector, we must remain vigilant to the wider challenges too. The report is correct to highlight incidences of where companies have misled customers and the FCA is right to take a tough line as this could bring the whole sector into disrepute.”
The report added that it will continue to monitor the market in addition to the formal review process and will take any appropriate action.
Mr Lunn summed up by saying: “Our aim is to treat both borrowers and lenders who use our platform with equal levels of professionalism and this includes implementing robust credit risk practices. We pride ourselves in the approach we have taken, putting the customer first as the industry continues to rapidly evolve.”
And, if proof were needed of customer satisfaction, read this review that caught our eye on the LendingCrowd blog.