1. FCA Rules & Principles Applicable to P2p Platforms

Un-official outline of FCA Rule’s applicable to P2P platforms.

Un-official outline of FCA regulatory requirements for Peer-to-Peer lending platforms

1. FCA Rules & Principles applicable to p2p platforms:

Rule book / Sections / Start date/ from authorisation
Principles for Businesses (PRIN) / Subject to high level standards / 1st April 2014
General Provisions (GEN) / Subject to high level standards / 1st April 2014
Consumer Credit Sourcebook (CONC) / -Adequate explanation of credit agreement [CONC 4.3.3G, 4.3.4R, and 4.3.5R and transitional provision TP4.1].
-Assessing creditworthiness of borrowers [CONC 5.5 and TP 4.1]
-Financial promotions [CONC 3.2, 3.3, 3.10 and 3.11]
-Risk warning to borrower if secured against home [CONC 4.3.6R]
-Right to withdraw borrower notice[CONC 11.2 and TP 4.6]
- Notice of Arrears
[CONC 7.17 to 7.19and TP 4.3-TP4.5]
-HCSTC P2P loans
[CONC 6.7.20R)
-Rule relating to the carrying on of activities [CONC 7 debt collection, CONC 8.10 provision services]
-Rules & guidance for refinancing credit [CONC 6.7.17R to 6.7.19R, 6.7.21G to 6.7.22G and 6.7.24R to 6.7.26R)
-Roll over limits for P2P HCSTC loans [CONC 6.7.23R and transitional TP 3.3]
-Limit to recovery use of CPA by HCSTC P2P loans [CONC 7.6.12R. 7.6.13R and TP 3.4 and 3.5)
- Prohibition on CPA to recover part-payments on HCSTC P2P loans [CONC 7.6.14R, T.P 3.6] / 1st Oct 2014
1st April 2014
1st April 2014
1st April 2014
1st Oct 2014
1st Oct 2014
1st July 2014
1st April 2014
1st April 2014
1st July 2014
1st July 2014
1st July 2014
Perimeter Guidance Manual / Lending by way of business[2.3] / 1st April 2014
Money laundering regulations / 1st April 2014
Senior Management Arrangements, Systems and Controls sourcebook (SYSC) / Subject to high level standards and arrangements to administer loans in the event of a platform failure[SYCS 4.1.8AR to 4.1.8ER and 4.1.9AR] / 1st April 2014
Interim Prudential sourcebook for Investment Businesses (IPRU(INV)) / INPRU(INV) 12
12.2.6R fixed amount £20,000
12.3.5R Transitional Financial resource calculation (Investment subsidiaries & Intangible assests not deductible)
12.2.6R fixed amount £50,000
12.3.5R Financial resource calculation (with Investment subsidiaries & Intangible assests deductible) / 1st April 2014
1st April 2014 to 31st March 2017
1st April 2017
Conduct of Business Sourcebook (COBS) / All COBS rules with exception of COBS 15COBS 14.3.7 provides example of P2P agreement disclosure requirements / 1st April 2014
Client Assets Sourcebook (CASS) / CASS 1A, CASS 7 and 7A / 1st April 2014 and from this point even money received/held prior must be treated the same.
Threshold Conditions (COND) / Threshold conditions for FCA regulated firms / 1st April 2014
Dispute resolutions (DISP) / Complaint’s handling and reporting / 1st April 2014
Statements of Principle and Code of Practice for Approved Persons (APER) / Code of conduct for approved person / 1st April 2014
The Fit and Proper test for Approved Persons (FIT) / Requirement for approved person. / 1st April 2014
FEES manual / Fee’s for FCA & FOS / 1st April 2014

2. Reporting requirements:

All FCA reporting forms to be submitted via FCA GABRIEL system.

Item / FCA Format / Start/Frequency
Financial data / CCR001* / 1st Oct 2014. Depending on business size annually or twice a year (within 30days)
Volumes / CCR002* / 1st Oct 2014. Depending on business size annually or twice a year (within 30days)
Lenders / CCR003* / 1st Oct 2014. Depending on business size annually or twice a year (within 30days)
Debt collection / CCR006* / 1st Oct 2014. Depending on business size annually or twice a year (within 30days)
Information on p2p agreements / FN070* / 1st Oct 2014. Quarterly (within 20 business days of end of period) after Authorisation
Capital adequacy / FN069* /email** / 1st Oct 2014. Quarterly (within 20 business days of end of period) or by email** within 14 days of a trigger event (25% increase in firms total value of amount of loans funded)
Investor complaints / DISP 1 Annex 1R* / 1st Oct 2014. Twice a year
Client money and client assets / FSA039 / 1st Oct 2014. On firms accounting reference date or monthly for medium/large firms)
Annual report and accounts / - / Firms accounting reference date
Balance sheet / FSA029 / Firms accounting reference date
Income statement / FSA030 / Firms accounting reference date

Note:

*Form not yet available on FCA GABRIEL system

** email address TBC