The Financial Conduct Authority (FCA) is currently conducting a review to determine if its rules are adequate for the new pensions market, the report is due in the summer. We are also aware that the FCA from the 1st April 2015, will regulate seven additional UK financial benchmarks across the fixed income, commodity and currency markets.
In March 2014, the Chancellor announced changes to give people further freedom with their pension’s pots. These modifications will come into play in April 2015 and it is important that the FCA offer solid advice and guidelines where appropriate. With this, the FCA are building on their changes to standards that have already been introduced. These include; how complaints should be dealt with; how the outcome of the guidance guarantee session should be recorded; and how those delivering the guidance should work together to ensure that all those accessing the service get a consistent outcome.
Further to this, the FCA’s consultation seeks a broadened understanding on the fees for the FCA’s consumer credit regime, amendments are to include; charges for bringing second charge mortgage lenders under their Mortgage Lending Scheme and for the new Payment Services Regulator.
Following the introduction of a rate cap on short-term lending by the FCA it is predicted to see a surge in the use of alternative lending as lenders are anticipating a short-fall in the supply of non-standard credit in 2015. It is a new landscape for lenders looking to use alternative sources of investment such as; Peer-to-Peer platforms as the FCA are altering the way in which individuals and organisations can lend.
Wellesley & Co. are regulated by the FCA and operate in accordance with their guidelines. The company have a range of products that offer lenders in excess of 6% return on their funds. Wellesley specalise in asset backed lending and currently supply finance for development within the property sector. Wellesley & Co. will be following the changes to regulation to see how the FCA will manage the overall regulation of the Peer-to-Peer market.
Some industry heads feel that the FCA hinder the Peer-to-Peer industry rather than promote it. The regulations can become convoluted and obstruct growth of the sector and lenders within the industry. However, regulation is needed within this fast growing sector to ensure it provides the best service possible for its customers and to ensure longevity within the industry.