Innovate Finance lobbies the FCA and the Treasury for fintech support


Innovate Finance has had a busy period of lobbying the Treasury and the Financial Conduct Authority (FCA) to consolidate the position of the alternative lending market.

The chief executive of the fintech organization, Janine Hirt (pictured), revealed in an October email update that the organization is in dialogue through its peer-to-peer lending arm, the 36H group, with the FCA on potentially tighter restrictions on retail investors.

The city watchdog last month released a three-year strategy to improve consumer protection, especially for what it sees as high-risk investments, including P2P loans.

The regulator said it aims for a 50% reduction in the number of consumers investing money in high-risk investments that indicate low risk tolerance or exhibit characteristics of vulnerability, by 2025.

Over the next three years, the FCA said it would “strengthen the financial promotions regime in three areas, our classification of high-risk investments, further segment the high-risk market, and tighten the demands placed on companies when they do. approve financial promotions “.

It follows a call for papers (CFI) on consumer investment that the FCA released in April, investigating whether more types of investments should be subject to marketing restrictions and whether stricter rules on financial promotions are needed.

P2P lenders have already fought back against these proposals and the UK Crowdfunding Association sent research to the FCA in response that showed investors understand the risks in the industry.

Peer2Peer Financial News asked Innovate Finance for details on its dialogue with the FCA.

Innovate Finance also revealed that it made a Treasury submission ahead of its fall budget.

It aims to help the sector support the economy by creating jobs in fintech clusters and suggests adding innovation and competitiveness to the remit of regulators.

Innovate Finance also suggests that there needs to be more intergovernmental and regulatory cohesion on the UK’s fintech strategy.

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