Lendermarket pauses lending while finalising ECSPR license

Lendermarket has paused new lending while it awaits its new crowdfunding license under the European Crowdfunding Service Provider Regulation (ECSPR).

The Dublin-based peer-to-peer lending marketplace has told investors that it is in the final states of securing this license and expects final approval to be granted soon. However, until then the platform has temporarily paused listing new loans.

“Lendermarket views the European crowdfunding regulation favourably as an important advancement in the P2P industry,” said a platform spokesperson in a message to investors.

Read more: Lendermarket adds Colombian originator offering 18pc returns

“We view its framework as benefiting both investors and platforms, contributing to the maturity and mainstream acceptance of the industry.

“We are very pleased to inform you that Lendermarket is presently in the concluding stages of the crowdfunding application process, awaiting final approval from a European regulatory authority.

Read more: Lendermarket debuts new account features

“Simultaneously, we have temporarily paused listing new loans on the platform. New loans will be immediately published as soon as the crowdfunding application concludes.”

The platform added that it expects to have an update for investors within the next two weeks, and encouraged users to activate their auto invest options, to optimise their chances of securing investments.

The ECSPR was introduced in November 2021 to harmonise P2P lending and crowdfunding across the continent.

All firms had to attain a licence by 10 November 2023.

Read more: European P2P returns hit 10.6 per cent