Peer-to-peer (P2P) investment research and analysis provider Orca has launched a platform offering standardised metrics to help advisers and investors compare P2P investments.
The platform will allow users to perform "in-depth due diligence" on P2P investments and benchmark them in a similar vein to traditional asset classes to make "risk-adjusted, informed investment decisions or recommendations", it said.
It will also provide P2P investment and market data on interest rates, default rates, bad debt rates and platforms' financial understanding.
Despite expecting an estimated 2.7 million people to be investing in P2P by 2020, CEO Iain Niblock said there has been "virtually no uptake" by financial advisers since the products were brought under the regulatory investment advice rules last year.
Back then the Financial Conduct Authority had told advisers they "must form their own opinion" of the risks associated with the investments and shrugged off concern it could be "impossible" to conduct proper due diligence, as warned by some industry players.
Niblock said the risks were "often relatively misunderstood". "Investors and financial advisers alike do not have the tools and information to feel confident about P2P investments," he said.
"Our platform therefore aims to provide compliant, credible and robust P2P data and analytics, similarly to what's available for equity or fixed income investments, to empower investors and financial advisers when opting for P2P," he added.
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