Ex-FSA chairman attacks P2P in wake of industry's biggest failure

Crowdfunded Rebus lost £800k

Carmen Reichman
clock • 4 min read

Former chairman of the financial regulator Adair Turner has warned about peer-to-peer (P2P) lending, predicting "big losses" in the coming decade a week after the sector experienced its biggest investment failure.

Turner (pictured) told BBC Radio 5's Wake Up To Money programme he worried automated processes and a lack of good credit underwriting will mean people are bound to lose money from their investment. He warned: "The losses which will emerge from peer-to-peer lending over the next five to ten years will make the worst bankers look like absolute lending geniuses." People should not be allowed to invest unless they can afford to lose all their capital, Turner said. His comments came after one of the biggest crowdfunded projects to date collapsed earlier this month, potentially losing £8...

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