ASIC has provided guidance to peer-to-peer (P2P) lenders on their regulatory obligations and highlighted the key risks associated with their products.
The corporate regulator has made available an information sheet that describes the current regulatory regime for P2P lenders (also known as ‘marketplace’ lenders). The information sheet also details the key risks they face in providing P2P products, as well as good practice strategies they may consider adopting.
ASIC commissioner John Price said P2P lending is a new and innovative concept and the information sheet is an example of how ASIC’s Innovation Hub is helping innovative businesses understand their regulatory obligations to support their growth and development in Australia.
“Adopting some of these good practices can help investors understand the product and risks and build community trust and confidence in marketplace lending more generally,” Mr Price said.
ASIC is also encouraging fintech start-ups to apply for help from its Innovation Hub if they meet eligibility criteria.
[Related: Treasurer makes fintech pledge]