A 3 minute guide to The Peer-to-Peer Finance Association

The Peer-to-Peer Finance Association:

A 3 minute guide

The P2PFA is the UK industry body for peer-to-peer finance.

Hang on, what’s Peer-to-Peer

finance?

” “ Peer-to-peer finance

platforms facilitate funding via direct contracts between

lenders and borrowers

This revolutionary concept uses the power of the internet

to cut out unnecessary intermediaries and banks

Businesses or consumers want to borrow money at a reasonable interest rate

Businesses or

consumers

Investors

Investors and savers want to get a good return on their

money

P2P platform

Businesses or

consumers Investors

￡! ￡!

The platform connects the two

P2P platform

Businesses or

consumers Investors

￡! ￡!

and then enables repayment

Peer-to-Peer platforms have experienced extraordinary growth since the concept

emerged in 2005

£0

£100

£200

£300

£400

£500

£600

£700

£800

£900

£1,000

2010 2011 2012 2013

Mill

ions

Cumulative gross lending data

for P2PFA members

In 2013 these companies grew by

Read more stats on the P2PFA website >>>

The Peer-to-Peer Finance Association was set up to ensure high standards in this fast-growing industry

It was founded in August 2011

There are now 8 members

So what’s involved in being

a member?

All members of the P2PFA must adhere to the rules and operating principles drawn up by the association

Rule #1

All members have to maintain a minimum amount of funds to maintain stability

Rule #2

Members have to keep their clients’ funds separate to

their own

Rule #3

Members have to lend responsibly and manage credit risk

Rule #4

Transparency

Members have to communicate to their clients: •  Likely default rates •  Terms of the product •  Risks and likely returns •  Fees and charges

Transparency

Each member must ensure that clear, fair and not misleading information is published on their website

Transparency

” “

Rule #5

Members have to make sure their IT systems are secure

and reliable

Rule #6

Members must have a clear complaints handling policy

” “

Rule #7

Each member must make arrangements to ensure the orderly administration of its customers’ contracts in the event that their platform ceases to operate

Christine Farnish is the independent Chair of the P2PFA, having previously worked as Consumer Director at the FSA

2014 is a big year for the P2PFA, with the FCA bringing in regulation for P2P finance and crowdfunding from April 1st

Read more on the P2PFA website >>>

As the association’s newest member, MarketInvoice is proud

to adhere to the P2PFA’s rules and shares its commitment to transparency and innovation

Read more on the MarketInvoice website