FCA Cracks Down On Peer-to-Peer Investing

Regulator to limit P2P investments to 10% of an investor's assets and require firms to improve quality of information made available to customers

James Gard 4 June, 2019 | 1:12PM

To-do list

The Financial Conduct Authority is bringing in new rules to regulate the peer-to-peer sector just a  week after Lendy called in administrators.

The regulator is putting a limit in place so that retail investors can only invest a maximum of 10% of their portfolio in peer-to-peer. This will stop investors “over-exposing” themselves to risk, the FCA says. This restriction will not apply to retail customers who have received regulated financial advice, however. Where investors have not received advice, P2P platforms will have to assess customers’ “knowledge and experience” of peer-to-peer investments.

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James Gard  is content editor for Morningstar.co.uk

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