In May this year, we received a peer-to-peer lending interim license from the UK’s Financial Conduct Authority (FCA). This means that Bondora has adopted the gold standard for Europe that is designed by authorities who are keen to promote and support alternative finance through clear and fair systems.
The FCA implemented their regulations in 2014 where platforms under these regulations are required to demonstrate that they have sufficient financial and non-financial resources to operate and check customers’ understanding before allowing transactions. Especially in alternative finance industry where consumer trust is key to success, appropriate regulation offers assurance to investors and borrowers.
We have applied for the full authorization from the most respected regulator in Europe and this means that we are going through extensive checks. FCA has to go through all our processes and documentation ensuring that Bondora as a company is financially stable, have achieved and is maintaining a satisfactory level of competence.
The reviewing process may take up to 12 months. In 2016, the FCA will complete a full post-implementation review of the crowdfunding market and the authorization and regulation are good news for our customers across Europe.