Who can use P2P Lending UK? 30/09/2019
One of the most common questions we have had since Ablrate began in 2014 is “Who can use P2P Lending?”. What seems to be a relatively simple question is actually becoming more complex over time with new regulations and protections being put in place.
The fundamentals might differ between platforms but for the Ablrate platform, we have some basic rules. To start members must create an individual or corporate account. The rules become slightly more complex if an account is being created for an organisation if you would like to learn more please check out our FAQ Who is eligible to become a lending member?
We are often asked if we accept new users from outside the UK, the answer is yes, except the USA. We might, however, ask you to provide proof that P2P Lending is allowed in your country as there are sometimes local regulations prohibiting participation. If you would like to learn more about your eligibility to join our platform from overseas, please contact us.
In recent months there have been new rules for P2P Lending UK platforms provided by the FCA. These new rules are designed to protect investors, you can learn more about these new rules on the FCA website. One of the key areas of these changes is that peer to peer platforms need to only provide offerings to those who understand the risks and are able to demonstrate (via an ‘Appropriateness Test’) that they have sufficient experience or knowledge to invest. These new set of rules add a level of complexity when it comes to joining a peer to peer platform. Complying with these rules could be as simple as a tick box for being a sophisticated investor, but as you would expect this would most likely have a 100% completion rate and the FCA have ruled against that method.
Here at Ablrate, we want to make sure that we do more than just follow policy but in fact, set the standard for appropriateness. Along with upcoming updates to the platform, we will also be implementing a training scheme to help inform existing and new users about the platform and the fundamentals of peer to peer lending. This guided walkthrough of the Ablrate P2P Lending Platform will help inform lenders on all aspects of the platform from pledging to a loan to investing on the secondary market.
Once this training is completed or if the user opts out, they will be provided with several questions to make sure that the Ablrate platform and risks of P2P lending are understood. If the user’s responses to the questionnaire do not meet the standards of appropriate investor, then they will be directed back to the areas of the training they need to review.
As you can see there are only a few factors affecting eligibility to get involved in P2P Lending, but something that must be considered is if Peer to Peer Lending is right for you. You can learn more about the benefits of P2P lending from our blog “Is Peer to Peer Lending a good investment?”