RateSetter in “final stages” of FCA authorisation process
RATESETTER believes it is in the “final stages” of reaching full authorisation after becoming the last of the main peer-to-peer lenders to be trading on interim permissions.
The platform is the last of the Peer2Peer Finance Association (P2PFA) members still awaiting full permission after ThinCats announced it had received Financial Conduct Authority (FCA) authorisation last week.
Established P2P brands such as Zopa and Funding Circle received full authorisation earlier this year, following Folk2Folk, Landbay and Lending Works.
MarketInvoice, another member, does not require FCA approval as invoice finance does not fall under the City watchdog’s remit – technically the platform is selling invoices rather than lending.
And LendInvest, which dropped its FCA application, has left the P2PFA.
The wait is holding RateSetter back from launching its Innovative Finance ISA (IFISA) and it is facing questions from investors on social media about when the product will be available.
Hi David, we're at an advanced stage with the FCA, working towards regulatory approval which will allow us to launch an ISA.
— RateSetter (@RateSetter) August 2, 2017
We're still working with the FCA towards authorisation before we can launch our ISA, we'll keep you updated on this 2/2
— RateSetter (@RateSetter) August 8, 2017
The consumer and business lender is unable to apply for ISA manager status until full approval comes through from the FCA.
“We continue to work closely with the FCA to secure full regulatory authorisation as soon as possible, and believe we are in the final stages of the process,” a spokesperson for RateSetter said.
The FCA said last month that it was still considering “complex cases” in the consumer credit space for full authorisation. There is nothing to suggest this includes RateSetter.
The City regulator is set to reveal its full findings from its review of P2P imminently, which are expected to lead to tighter regulation of the sector. Its interim feedback last December indicated concerns around how the industry conveyed the risks to consumers.
