Good news for the (Peer-to-Peer) P2P industry. On the 17th December, the Treasury announced that P2P is exempt from Collective Investment Scheme (CIS) definition. Previously, there has been some ambiguity as to whether some P2P models would be viewed as part of the crowdfunding loans model or as a Collective Investment Scheme. There has now been an amendment to The Financial Services and Markets Act 2000 (FSMA)(Collective Investment Schemes) Order 2001. This amendment in more simple terms, provides that electronic systems in relation to lending (P2P platforms) and the operation of arrangements closely associated with this, are exempt from the definition so far attributed to collective investment schemes. As of the 18th January 2016, operation of these systems is a regulated activity under Article 36H of The Financial Services and Markets Act 2000 (FSMA) Order.
Our team at QuidCycle view this as a very necessary step in the right direction in support of growth within the P2P industry. Our CEO Frank Mukahanana who is also a Board Member at the UK Crowdfunding Association says that this is a “Very welcome amendment reflecting governments support to the Peer-to-Peer (P2P) industry. I believe this will bring much anticipated speed to the authorisation process for many P2P firms waiting for full authorisation ahead of the Innovative Finance Individual Savings Accounts (IFISA) coming in April 2016.”
Looking forward to seeing the positive impact of this amendment within the P2P industry in 2016. Watch this space and from all the team at QuidCycle, we want to wish you a very Merry Christmas and a prosperous New Year!
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