FCA wants to extend commission ban to P2P investing

Ensure consumer protection

The Financial Conduct Authority (FCA) is seeking to extend the ban on commission to peer-to-peer (P2P) investments.

The move follows government plans to allow the loan-based crowdfunding to be held in ISAs, under what will be known as an Innovative Finance ISA (IFISA), expected to be available from April 2016. As part of the plans, the government intends to make the provision of advice about P2P lending a regulated activity. Working on the assumption that the legislation will be made by Parliament, the FCA said it is preparing to ensure "an appropriate degree of consumer protection". Woodford-backed P2P trust raises fresh £400m This may include it consulting on ways to ensure P2P advice is not...