Irish P2Ps welcome new crowdfunding regulations
The Central Bank of Ireland (CBI) has introduced a new crowdfunding regulatory regime, following a years-long campaign for regulatory recognition by Irish peer-to-peer lenders.
The new regime requires all crowdfunding service providers to be authorised and subject to operational requirements and investor protection measures.
They will also be required to incorporate appropriate warnings in their advertising to potential investors.
But the regulations also solidify the role of crowdfunding and P2P lending platforms as a key part of Ireland’s alternative finance ecosystem.
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Linked Finance – the largest P2P lending platform in Ireland – said that it welcomes the CBI announcement as it marks the “official recognition of the important role P2P lending has to play as a source of funding to help growth the small- and medium-sized (SME) sector in Ireland.”
“For several years we have been seeking an Irish regulatory framework and this announcement is a useful move in that direction,” said a Linked Finance spokesperson.
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“Linked Finance has always managed its business to meet international best practices introduced in markets where the P2P sector is more mature.”
John Cronin, an analyst at Goodbody, commented that the new regulatory regime is “a sensible initiative we think.
“We welcome the introduction of regulation for the space in an effort to boost investor protections for a product that is here to stay,” Cronin added.
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