P2P Appropriateness Test and New Rules 10/12/2019
After the first day of the Appropriateness Test, we can say that there has been a great response.
Over 1,000 people have taken the test. The majority of people have passed and some are in review where they narrowly failed the test. When it comes to those with an automatic fail most have not answered enough correct responses, rather than getting answers wrong. This may be because a number of peer to peer lending platforms have chosen to ask questions with one correct response rather than ask questions that have two or three.
Of those that have passed, circa 50% have classified themselves as a Self-Certified Sophisticated Investor, 20% classified as High Net Worth, 20% as Restricted and 10% as Certified Sophisticated.
Feedback has been good, the test has been described as ‘trickier’ than other platforms, we are comfortable with at as we have embraced the rules and education has to be at the forefront now.
In other news…
The Appropriateness Test is just one of the changes that came in yesterday. Something that must have had a number of platforms putting in the work is the new disclosure rules.
Our experience has taught us that the regulators would be requiring more disclosures, so we have been making these disclosures for a few years now. Things such as Credit Risk Assessments, details of security and transparency on fees charged are all in our documentation when a loan is launched.
We have added new FAQs for other required disclosures, so it would be worth checking the FAQs. We will also be updating a few others as we go through just to make sure they are clear and relevant to the rule changes.
The great news is that the new platform is coming along nicely. Many of you will be pleased to hear that it has been fully optimised for mobile (see the images to the left, please forgive spelling mistakes and mocked up notifications).
We are also super excited about ASMX being integrated which we hope will turbocharge liquidity. Along with all the new risk management tools of the new platform, we believe 2020 will be a great year and a new era for Ablrate and P2P lending as an industry.