- Posted by Steven Krivinskas
- On 9 April 18
- Financial Regulation, FSMA, Peer-to-peer lending platforms
The circumstances in which borrowers who raise funds through peer-to-peer lending platforms would be considered to be carrying on the regulated activity of accepting deposits has been clarified by a new statutory instrument.
The Financial Services and Markets Act 2000 (Carrying on Regulated Activities by Way of Business) (Amendment) Order 2018 (SI 2018 / 394) was published on 21 March 2018.
The Amendment Order makes it clear that businesses borrowing via a peer-to peer lending platform that satisfy the conditions in the Amendment Order should not be regarded as accepting deposits “by way of business” and therefore do not need to be authorised or exempt persons to carry on that activity lawfully.
The Order came into force on 22 March 2018 and can be accessed here https://www.legislation.gov.uk/uksi/2018/394/pdfs/uksi_20180394_en.pdf.