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The Peer-to-Peer Finance Association:
A 3 minute guide
The P2PFA is the UK industry body for peer-to-peer finance.
Hang on, what’s Peer-to-Peer
finance?
” “ Peer-to-peer finance
platforms facilitate funding via direct contracts between
lenders and borrowers
This revolutionary concept uses the power of the internet
to cut out unnecessary intermediaries and banks
Businesses or consumers want to borrow money at a reasonable interest rate
Businesses or
consumers
Investors
Investors and savers want to get a good return on their
money
P2P platform
Businesses or
consumers Investors
£! £!
The platform connects the two
P2P platform
Businesses or
consumers Investors
£! £!
and then enables repayment
Peer-to-Peer platforms have experienced extraordinary growth since the concept
emerged in 2005
£0
£100
£200
£300
£400
£500
£600
£700
£800
£900
£1,000
2010 2011 2012 2013
Mill
ions
Cumulative gross lending data
for P2PFA members
In 2013 these companies grew by
Read more stats on the P2PFA website >>>
The Peer-to-Peer Finance Association was set up to ensure high standards in this fast-growing industry
It was founded in August 2011
There are now 8 members
So what’s involved in being
a member?
All members of the P2PFA must adhere to the rules and operating principles drawn up by the association
Rule #1
All members have to maintain a minimum amount of funds to maintain stability
Rule #2
Members have to keep their clients’ funds separate to
their own
Rule #3
Members have to lend responsibly and manage credit risk
Rule #4
Transparency
Members have to communicate to their clients: • Likely default rates • Terms of the product • Risks and likely returns • Fees and charges
Transparency
Each member must ensure that clear, fair and not misleading information is published on their website
Transparency
” “
Rule #5
Members have to make sure their IT systems are secure
and reliable
Rule #6
Members must have a clear complaints handling policy
” “
Rule #7
Each member must make arrangements to ensure the orderly administration of its customers’ contracts in the event that their platform ceases to operate
Christine Farnish is the independent Chair of the P2PFA, having previously worked as Consumer Director at the FSA
2014 is a big year for the P2PFA, with the FCA bringing in regulation for P2P finance and crowdfunding from April 1st
Read more on the P2PFA website >>>
As the association’s newest member, MarketInvoice is proud
to adhere to the P2PFA’s rules and shares its commitment to transparency and innovation
Read more on the MarketInvoice website