The Financial Services Bill could benefit the peer-to-peer lending sector, some platforms have claimed.
The bill was introduced yesterday to maintain regulatory standards and openness to international markets post-Brexit.
It will introduce measures that will streamline the City regulator’s “process for removing a firm’s authorisation and taking them off the public register, to improve accuracy and reduce the risk of fraud.”
The bill will also legislate to make the appointment of the chief executive of the Financial Conduct Authority (FCA) subject to a fixed, once renewable, five-year term.
P2P platforms highlighted streamlining the removal of firms off the public register as a key positive change.
“It definitely benefits the sector because if it streamlines taking people off the register who shouldn’t be on there, it’s the right approach,” said Mike Bristow, chief executive of CrowdProperty.
“A swift approach to remove these firms off the register is in the best interests of everyday consumers and the reputation of the sector it covers.”
David Bradley-Ward, chief executive of Ablrate, said the bill could help avoid issues such as the collapse of P2P lender Collateral, which entered into administration in 2018 after it emerged that it was not authorised by the regulator.
“Collateral was operating and everyone thought they were regulated when they weren’t,” he said.
More widely, Daniel Rajkumar, managing director of Rebuildingsociety, said the bill will help prepare the UK for Brexit by ensuring the financial services sector is competitive.
“An update was needed for a long time,” he said.
“It’d also be good to see an update on the Banking Act which is in dire need of one.”