FCA ignores industry warning on 'impossible' adviser P2P due diligence

Difficult risk assessments

The Financial Conduct Authority (FCA) has shrugged off industry concerns it may be "impossible" for advisers to conduct due diligence on peer-to-peer lending, which will be brought under suitability rules.

In a policy statement out on 21 March the regulator told advisers they "must form their own opinion" of the risk of any investment and advise their clients based on their own views. If unable to form an opinion based on the information available, they should "not advise the client to invest" in that product, it said. The industry had responded to an FCA consultation on bringing advice on peer-to-peer lending under its regulatory oversight, by pointing out it was not possible for an adviser to conduct adequate due diligence on the products to allow them to advise on them with confidenc...