FCA wants to extend commission ban to P2P investing

Laura Miller
clock

The Financial Conduct Authority (FCA) is seeking to extend the ban on commission to peer-to-peer (P2P) investments.

The move follows government plans to allow the loan-based crowdfunding to be held in ISAs, under what will be known as an Innovative Finance ISA (IFISA), expected to be available from April 2016. As part of the plans, the government intends to make the provision of advice about P2P lending a regulated activity. Working on the assumption that the legislation will be made by Parliament, the FCA said it is preparing to ensure "an appropriate degree of consumer protection". This may include it consulting on ways to ensure P2P advice is not influenced by commission, by banning the payme...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

FCA calls on insurers to demonstrate fair value

FCA calls on insurers to demonstrate fair value

Firms and senior managers to be held accountable for failings

Jaskeet Briah
clock 22 August 2024 • 2 min read
How to keep up: How regulatory risk shows up in today's businesses

How to keep up: How regulatory risk shows up in today's businesses

Second in series of three articles looking at investment regulation

Gareth Johnson
clock 21 August 2024 • 4 min read
Commissioner flags 'inconsistent' FCA restrictions process

Commissioner flags 'inconsistent' FCA restrictions process

FCA must set out a clear VREQ policy, FRCC urges

Jen Frost
clock 20 August 2024 • 3 min read