Regulatory permissions

Hi nick,

Yes we're currently under interim permissions and our lawyers and compliance advisers are comfortable that we have the requisite permissions in our application for full FCA approval. 

Many thanks,

Gordon 

I understand that as part of the transition of regulatory responsibilities from the OFT to the FCA, firms that previously conducting loan-based crowdfunding holding a OFT licence, were required to apply for interim permission for this specific activity amongst other credit activities by 1 April 2014, ie there wasn't a catch all permission.  Therefore I'm surprised that this activity isn't included in the current consumer credit interim permission in a similar fashion to SS.

Collateral (UK) Limited, the company undertaking the p2p platform activity, was incorporated in 17 November 2014.  Any new entrant undertaking p2p platform activities after 1 April 2014 are required to apply for full FCA permission from the outset and could not obtain interim permission.  I assume the interim credit permission was somehow transferred into the company from a previous business - this still wouldn't explain why specific interim permission for p2p activity was/has not been applied for.

One possible likely explanation would be the nature of how loans are originated and participated in my lenders.  If the loans are initially originated by the company in the first instance and resold on a part by part basis to 'lenders' this falls outside the definition of p2p activity for regulatory purposes - I believe this is the reason why the likes of Lendinvest, Marketinvoice and MT do not have specific p2p platform permissions.

Obviously I have included some speculation in the above, but had hoped that the company would have provided further clarity on why it doesn't have a specific p2p platform permission under its current consumer credit interim permission or under a FCA permission.  My original request for clarification was more out of satisfying my curiosity than addressing any real concerns given the company does have interim permission for undertaking consumer credit business so is obligated to follow the same high level standards applied by the FCA.  However, certain rules in the FCA handbook such as ensuring adequate wind-down plans are in place in the event of platform failure are specific to operating a p2p platform so it would be comforting to know that the company is required to comply with these rules that are specific to interim/full FCA permissions for "operating an electronic system in relation to lending".