Peer to peer

FCA’s review of peer-to-peer lending

Lending Works welcomes the Financial Conduct Authority’s review of peer-to-peer lending and crowdfunding (published in February 2015), and the regulator’s ongoing oversight of our industry. We are committed to ensuring our services are transparent and easily understood by all existing and potential ‎lending and borrowers. 

The piece made some positive observations, including:

  • On the regulator’s visits to firms: "We were encouraged by what we found during our visits, including a good understanding of credit risk and robust Anti-Money Laundering and Know Your Customer checks"

  • On the regulator’s request for platforms to make changes to their financial promotions: "All the firms we wrote to were keen to comply and most made the required changes with immediate effect"


The regulator made some observations on the financial promotion issues they found with some platforms during their review:

  1. Promotions comparing crowdfunding investing to savings accounts and banking and, in doing so, creating the impression that the lender’s capital was secure;

  2. Insufficient information in promotions about the taxation of investments;

  3. From the perspective of the borrower, the omission or lack of prominence of the representative APR; and

  4. Promotions having a lack of balance by giving prominence to the benefits of borrowing without a prominent indication of risk in relation to the borrower’s financial circumstances.

Our approach

Lending Works firmly supports the FCA's approach to the regulation of peer-to-peer lending and the principles it has implemented. For some time before this review was released, Lending Works has provided webpages dedicated to informing consumers about each of the topics the FCA has highlighted.

These articles can be found by clicking the links below:

  1. What are the risks involved with P2P lending?

  2. Quick guide to paying tax on P2P income

  3. The Lending Works Borrow Money page

  4. If you have difficulty with your loan repaymentsQuick guide to loan underwriting and Quick guide to credit scoring

To read the regulator’s review in full, please click here.

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Our website offers information about saving, investing, tax and other financial matters, but not personal advice. If you're not sure whether peer-to-peer lending is right for you, please seek independent financial advice, and if you decide to invest with Lending Works, please read our Key Lender Information PDF first.

As with all investments, your capital is at risk.