Who represents P2P platforms? A need-to-know of the sector’s trade bodies
The peer-to-peer lending sector has been around for over 15 years and in that time it has seen several trade bodies and groups represent platforms.
Most recently, the UK Crowdfunding Association (UKCFA) has launched a sub-group for P2P lending platforms called the 36H Group.
Here Peer2Peer Finance News summarises the trade bodies and groups that have supported platforms in the sector.
Peer2Peer Finance Association
The Peer2Peer Finance Association (P2PFA) was launched in 2011 by founding members Funding Circle, Zopa and RateSetter, and was chaired by Paul Smee.
RateSetter would go on to leave the association in 2017, and other members, such as LendInvest, MarketInvoice, Landbay and ThinCats, left as the platforms changed focus to different strategies.
The P2PFA had some rules that were ahead of its time– in its early days all members were required to provide an accessible version of their full loanbook.
In January 2020 it was disbanded as members decided it has served its purpose as a self- regulatory body and became less relevant following the introduction of the Financial Conduct Authority’s (FCA) regulations for the sector in December 2019.
The 36H Group
When the P2PFA was dissolved, members instead set up a new association, the 36H Group, which was formed as a sub-group of fintech trade body Innovate Finance.
Its initial members were Funding Circle, Zopa, RateSetter, Lending Works and CrowdProperty, with Assetz Capital later joining. It was initially chaired by Charlotte Crosswell, who was chief executive of Innovate Finance at the time. I April 2021 Mike Carter was appointed as head of platform lending to lead the group.
Last year he said that the group will start collecting and publishing data on P2P lending volumes.
In January 2022, Carter said that Lending Works will remain a member of the trade body while it continues to run down its loanbook, and he confirmed that RateSetter had left after selling off its loanbook, while Zopa will leave after repaying investors all their funds.
Carter has responded to the FCA’s consultation on strengthening financial promotion rules for high-risk investments.
UKCFA
The UKCFA was formed in 2013 to promote the interests of crowdfunding platforms, their investors, and clients and has regularly been lobbying with policymakers.
Most recently, it has responded to the FCA’s consultation on strengthening financial promotion rules for high-risk investments.
This consultation cited UKCFA feedback to the last draft of FCA proposals, including the results of its lender survey that showed investors have a good understanding of the sector.
The trade body has five directors – Bruce Davis, director of Abundance, Atuksha Poonwassie, managing director of Simple Crowdfunding, Andrew Adcock, chief executive of Crowd for Angels, Debra Burns, compliance director of Seedrs and Frank Mukahanana, director at Wealth Harbour.
Members include Abundance, Simple Crowdfunding, Sourced Capital, Rebuildingsociety, Money&Co, Property Partner, AxiaFunder, Crowd for Angels, Downing Crowd, CapitalRise, Seedrs, Crowdcube, ShareIn, WiseAlpha, Triodos Crowdfunding and Tifosy Limited.
The UKCFA’s 36H Group
Earlier this month, the UKCFA launched a sub-group focusing on P2P lending, in response to the growing regulatory pressures on platforms.
The founding members include P2P platforms Abundance, Rebuildingsociety, Simple Crowdfunding and Sourced Capital, crypto platform Dacxi and fintech law firm Medici Legal.
Members of the UKCFA’s 36H Group will meet once a month to discuss P2P specific issues, best practices, lobbying activity, horizon scanning and data analysis.
Poonwassie said the new group has had a couple of meetings already focusing on responding to the Treasury’s consultation on financial promotion exemptions and is now focusing on the FCA’s proposals on strengthening financial promotion rules for high-risk investments.
