What will be in the new FCA chair’s P2P inbox?
The Financial Conduct Authority (FCA) is on the hunt for a new chair after Charles Randell announced his departure a year early, and peer-to-peer lending platform bosses have already identified the issues awaiting his successor.
Randell was appointed chair of the FCA in 2018 and will step down in spring 2022.
During his tenure, Randell oversaw the authorisation of a number of P2P lending platforms and the introduction of stricter regulations for the sector. The City watchdog also faced criticism for how it handled the regulation of collapsed P2P lending platforms such as Collateral and Lendy.
Read more: Six questions that every P2P investor should be asking
Randell’s successor will join as the FCA rolls out its new strategy to enhance consumer protections, particularly for what it views as high-risk investments including P2P lending.
Industry trade body the UK Crowdfunding Association (UKCFA) has highlighted several P2P-related issues that should be high up in the new chair’s inbox.
Read more: Just two P2P platforms accredited for recovery loan scheme
“We would urge the new chair to consider whether the approach to high-risk investments differentiates sufficiently between regulated and unregulated products, so that new rules do not provide further impetus for an exodus of companies to markets beyond the perimeter,” a spokesperson for the UKCFA told Peer2Peer Finance News.
“The challenge for the regulator will be the level to which it hopes that regulation can second guess both the market and consumer needs as we move towards a macro financial context in which the Bank of England is seeking to tighten its policy to meet the challenge of inflation post-pandemic.”
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