Peer-to-peer lending platforms have been concerned in a few of the commonest breaches of the Metropolis regulator’s monetary promotions guidelines within the second quarter of this yr.
The Monetary Conduct Authority (FCA) launched its newest knowledge on its enforcement of economic promotion guidelines, for the interval between 1 April and 30 June.
Its interventions resulted in 1,507 promotions being amended or withdrawn by authorised companies.
Learn extra: Regulation particular report: Standing: It’s difficult
Retail investments and retail lending have been the sectors with the best amend/withdraw outcomes, totalling 70 per cent of the FCA’s interventions with authorised companies over the interval.
The regulator stated a few of the commonest breaches concerned debt recommendation companies and P2P lending platforms.
Learn extra: FCA challenged 8,582 monetary promotions final yr
Moreover, the FCA issued 400 alerts on unauthorised companies and people, 11 per cent of which have been clone scams.
Nonetheless, the figures have been down on the primary quarter of this yr, when 2,235 promotions have been both amended or withdrawn by authorised companies and an extra 611 alerts have been raised on unauthorised companies and people.
Final yr, the FCA finalised its guidelines on the advertising and marketing of high-risk investments to shoppers, which incorporates P2P lending beneath its definition. The brand new guidelines require companies to make use of clearer and extra distinguished threat warnings, and to cease providing investor incentives comparable to ‘refer a pal bonuses’.
The second-quarter monetary promotions knowledge comes forward of the FCA’s new Client Responsibility, which got here into drive on 31 July. The brand new Responsibility units greater requirements of client safety for regulated companies.