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Be Prepared! FCA Concerned For SMEs Post-Brexit
Following yesterday's news of a Financial Conduct Authority (FCA) helpline for the peer-to-peer (P2P) sector, come reports that the FCA is concerned about the sectors lack of preparedness for a hard Brexit amongst SMEs.
Financial firms not prepared appropriately for a no-deal Brexit may risk an impact on their business, according to an update from the The Financial Conduct Authority (FCA).Brexit will result in the loss of passporting for UK firms doing business in the EEA. Whether firms need regulatory permissions to continue to do business in an EEA country will depend on the activity they are carrying on, the local law and the approach of the local authorities in that jurisdiction.With the 31 October deadline approaching fast the UK regulator has increased its efforts signposting - digital adverts - its Brexit advice. The FCA is urging all firms to consider the implications of a no-deal exit and is particularly relevant for firms that:- are a UK business which does any business in the EEA
- passport into the UK and have not notified the FCA for entry into the Temporary Permissions Regime
- have consumers in the EEA
- transfer personal data from the EEA
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FCA's 10% P2P Proposal - Show The Ferret To The Nest Egg...
Question: When is advice not advice? Answer: When it comes from the Financial Conduct Authority (FCA).Let's start with a little context. There's been a greater focus on the peer-to-peer (P2P) sector from commentators and regulators, following the lamentable failure of the P2P platform, Lendy. Lendy's collapse was linked – completely unfairly – with a number of problems experienced by investors in unregulated investments. That scene was set by the London & Capital Finance debacle, followed by a slew of other similar but unrelated failures (unless you count the role of the regulator – which many disgruntled investors do).
It's in the light of the difficulty the FCA found itself in that we should consider the regulator's announcement of a new limit on investor exposure to P2P assets, the loans facilitated on this and other P2P platforms. Investors should not commit more than 10 per cent of their portfolio to P2P is the broad thrust of the proposition. It comes amid a drive towards greater transparency in reporting defaults and bad debts in platforms' loan books, more scrupulous risk management requirements and clarity on dealing with wind-downs in the event of a platform failure.That's right and proper. P2P is a young and fast-expanding sector of financial technology, and these measures are as prudent as they are welcome.Measures are prudent and welcome
The necessary implication is that the fund was previously actively deemed suitable for investors
- The 10 per cent figure though is in fact not so much a limit as an aspirationREAD MORE
