The Peer-to-Peer Finance Association is a new UK trade body. It has been set up primarily to ensure this innovative and fast growing sector maintains high minimum standards of protection for consumers and small business customers.
Peer-to-peer finance businesses are bringing much-needed new competition and innovation to the banking market in the UK. In 2011, peer-to-peer finance will account for more than £100 million of loans to individuals and small businesses.
As new financial regulatory structures are put in place by the Government over the next 18 months or more, the Association will also work hard to ensure that the new rules will include effective regulation for the peer-to-peer finance market.
The initial members of the Association are Funding Circle, RateSetter and Zopa - the largest peer-to-peer finance platforms at present in the UK. Other peer-to-peer providers are known to be interested in seeking membership in the near future, subject to meeting the required standards.
The Association is focused on peer-to-peer finance that is facilitated by platforms on which the majority of lenders and borrowers are consumers or small businesses, rather than ‘investment clubs’ or networks of sophisticated investors.
Membership of the Association is subject to its Rules and members must comply with the Association’s Operating Principles.