The platforms have one week to respond to the Treasury consultation
Peer-to-peer lending platforms and stakeholders have just one week left to respond to a Treasury consultation on the future of regulation.
The Future Regulatory Framework (FRF) Review: Proposals for Reform was launched on November 9, 2021 and the deadline for comments to the consultation is February 9 at 11:45 p.m.
The consultation proposed reforms to strengthen parliament’s control over the city’s watchdog, to ensure transparency in the regulator’s processes and diversity in their appointments.
The review was established to examine how the regulatory framework for financial services should adapt to the post-Brexit future.
Read more: Four regulatory changes that could impact P2P this year
The consultation indicated that the government has proposed to formalize in legislation the mechanisms by which the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) provide information to Parliament and said this is intended to ensure that they have information they need to undertake this review.
In addition, the government aims to strengthen the engagement mechanisms that exist between the Treasury and regulators.
He said this would be achieved through a new requirement for the PRA and FCA to respond to management letters issued by the Treasury, and new power for the Treasury to require regulators to revise their existing rules where the government considers that it is in the public interest.
Read more: FCA publishes proposals to strengthen financial promotion rules
Separately, in December, the Treasury launched a consultation on financial promotion exemptions for Certified High Net Worth Individuals, Sophisticated Investors and Self-Certified Sophisticated Investors. The deadline for responses is March 9.