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.
A quick question that came up: Why aren’t you mentioned in “finantsinspektsioon” as you are a credit provider now?
Can’t find anything about bondora/isepankur/sõbralaen.
https://www.fi.ee/index.php?id=286
Can you maybe explain a little more about, who is lending to whom and who is buying what?
From queries to and answers from Estonian tax office i start to get a feeling that if you would be actual legal credit provider, “investeerimiskonto” might be a possible option to invest in bondora as individual. (You might be in the same bucket as interactive brokers or any other brokerage company in that case)
Hi Joonatan,
Yes, we are a credit provider and hold a respective registration from Financial Intelligence Unit. Recent changes in Estonian legislation require that all credit providers apply for credit provider license (instead of this registration we hold) which will be under supervision of FI. We have submitted our application to receive such license and we will be visible once we have been granted this license. Currently our credit provider registration is valid.
Thank you so much for the explanation.
I’ve spoken now with Estonian Tax Office and in conclusion, there’s only one thing to do to make investing into bondora as an individual through “investeerimiskonto” possible: If you can classify yourself in any way as an “investment fund” (“investeerimisfond”) then you would meet all requirements. (After of course getting the actual licence also, but this is only a question of processing time of your application)
If it could be defined that the loan piece you are selling is an investment fund’s “piece” (sorry for my terminology in English, not my main language), then you would meet all the requirements now.
Can you give any insights about this kind of topic and possible move into direction so individuals can use “investeerimiskonto”? (Because, as i see, there’s only one requirement to be met… how much bureaucracy is needed, i don’t know)
Hi again,
Thank you for the information. Unfortunately we are not an investment fund in the sense of legislation (there are long list of requirements you need to meet in order to be one and business objective of investment funds is different from our activities). But we appreciate your interest on this.