THE MAJORITY of LandlordInvest’s investors passed its appropriateness test the first time but a fifth took multiple attempts.
The peer-to-peer lender, which offers buy-to-let mortgages to professional landlords, revealed that 80 per cent of its investors passed the test first time since its launch in December following the introduction of new Financial Conduct Authority (FCA) regulations for the sector.
The platform revealed 17 per cent have needed two to four attempts to pass and three per cent required five or more.
“The relatively high first-time pass rate reflects that most of our investors have previous investment experience or have been investing through LandlordInvest for quite some time and understand our business model and products,” Filip Karadaghi, managing director of LandlordInvest, said.
“We are not currently planning to amend the appropriateness test as we believe that it is appropriate to our business model and products but we will evaluate it on a bi-annual basis and more often if required.”
Since 9 December 2019, platforms have been 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.
All new users must also complete appropriateness tests to show their understanding of the risks of P2P lending.