INVESTORS will only be allowed to make new deposits or transfer ISA money to Proplend once they have passed an appropriateness test, from Monday 11 November.
The peer-to-peer property lender is the latest firm to implement investor marketing restrictions ahead of the regulatory changes that come into effect on 9 December.
Users will need certify as sophisticated, high-net-worth or restricted investors and pass an appropriateness test to be able to access loan information.
“We’ve decided not to accept new deposits or ISA transfers until you’ve passed our test – and we know that you’ll be able to invest again,” Proplend said in an email to its customers.
“You will be able to withdraw funds and sell loans without passing, providing you have at least attempted the test.
“Existing investments are exempt from appropriateness requirements but uninvested cash on account is not.
“From 11 November, you won’t be able to use cash already on account to make new loan investments until you have passed the test.”
Proplend said the process should take only take five minutes and will be available once users sign in.
It has also made a two page document available for investors that details what P2P lending is, the risks and how Proplend works, which should help pass the test.
The new FCA rules require platforms to introduce an appropriateness test and marketing restrictions for investors.
Under the regulations, platforms will be restricted to marketing to those who are certified or self-certify as sophisticated investors, those who are certified as high-net-worth investors, people receiving regulated investment advice, or those who certify that they will not invest more than 10 per cent of their net investible portfolio in P2P agreements.
Platforms must carry out an appropriateness assessment which considers a client’s knowledge and experience of the P2P investment before the platform can accept a subsequent instruction to invest. It is up to platforms to decide how this test will look, but the regulator has provided guidance on the information that can be provided and what needs to be assessed.