56 firms have either “interim permission” or full authorisation from the FCA to operate a peer-to-peer lending platform. A senior industry source, claimed that of these applications, he was aware of just 4 that had any commercial “reason to exist”.
There are fears that a rapidly expanding peer-to-peer industry is attracting too many newcomers Concerns are growing in the peer-to-peer lending industry that the market is being flooded with start-ups, some of which may be weak propositions that may expose investors to undue risks. Figures from the Financial Conduct Authority show that scores of operators are in the process of applying for regulatory authorisation. As of December 28, 56 firms had either “interim permission” or full authorisation from the FCA to operate a peer-to-peer lending platform. There are 68 applications for new or varied authorisation being considered.