Full FCA approval could be imminent for P2P lenders

THE PEER-TO-PEER finance industry’s arduous wait for full Financial Conduct Authority approval could be ending soon, the regulator hinted on Monday.

Some of the biggest P2P platforms, which have interim permission from the City watchdog, have been awaiting full approval for more than a year. If approved, they can apply to HMRC for their ISA manager licence, so that they can offer the Innovative Finance ISAs – the tax-free wrapper set to propel the industry into the mainstream.

The industry has been in the dark about when they can expect a decision from the FCA, but Christopher Woolard (pictured), director of strategy and competition at the regulator, indicated that they would not have much longer to wait.

“You should expect us to complete our major authorisations work in this sector soon,” he said at the LendIt industry conference on Monday.

“In terms of our review of the landscape, we expect to publish a feedback statement before the end of the year.”

Industry experts have speculated that the plan to issue a feedback statement indicates that there will be only minor amends to the regulatory framework, rather than major changes.

“We want to see competition, consumers appropriately protected, and successful and sustainable firms,” said Woolard.

“If we can achieve that together – firms, consumers and regulator – we can look forward to an industry that has continued success.”