New Marketing Regulations Could Pose a Risk for UK Online Lenders

The UK’s Financial Conduct Authority (FCA) has grown worried that ads of promised returns from p2p lenders in the UK are deceiving investors; a survey by the Cambridge Centre for Alternative Finance showed that 40 percent of retail investors invested more than their total income and about half of the 40 percent invested more than double their annual income in the p2p market; the ads are nor fully stating the risk according to the FCA and they are looking to implement safeguards; the market has pushed back on these new proposals saying they would eliminate choice for investors; the p2p aspect of the market has also changed with a lot of the lenders now getting funding from traditional financial institutions; the p2p market overall has changed a lot since first coming of age but the alternative asset has generated better returns from most traditional investments. Source.

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