ARCHOVER has updated its user sign-up process to clarify that all new investors must pass its appropriateness tests.
A newsletter from the peer-to-peer business lender had previously implied that only new restricted investors would have to take the test but the platform is now making it a requirement for everyone to do so after Peer2Peer Finance News queried its guidance.
“We referred your query to our advisors and you are correct that all new investors are required to take the appropriateness test and we have adjusted our on-boarding accordingly,” Charlotte Marsh, of ArchOver, told Peer2Peer Finance News.
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“In fact we will also be requiring all existing investors, whether restricted or sophisticated, to take the short test.”
ArchOver chief executive Angus Dent last year urged P2P lending platforms to do more to educate investors about risks in the wake of the Lendy and Neil Woodford scandals.
The boss and founder of the P2P business lender said that some platforms in the sector do not fully explain the risks attached to their investment offering.
Dent urged P2P platforms to take closer look at how they explain risk in order to avoid losing the trust of their lending communities.