ASIC today released guidance to help providers of marketplace (also known as ‘peer-to-peer’) lending products, including information about legal obligations.
ASIC Commissioner John Price said ‘We want to help innovative start-ups understand the regulatory framework they are operating under.’
‘Marketplace lending is a new innovative product and this information sheet is an example of how ASIC’s innovation hub is helping innovative businesses understand their regulatory obligations to support them to grow and develop in Australia,’ he said.
The information sheet describes the current regulatory regime and we will review the guidance in light of any future changes in the law or business structures. The information sheet also includes good practice strategies that marketplace lenders may consider adopting.
‘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,’ Commissioner Price said.
A number of marketplace lending entities were consulted in preparing the information sheet. ASIC thanks these entities for their participation in the consultation.
Fintech start-ups looking to provide marketplace lending are encouraged to use this information sheet to help them understand current regulatory requirements. ASIC also encourages fintech start-ups to apply for help from the Innovation Hub, if they meet eligibility criteria. Information about the hub, including eligibility criteria for help, is available on ASIC’s Innovation Hub.
Download
Information Sheet 213 – Providers of Marketplace Lending Products
Background
Marketplace lending matches people who have money to invest with people who are looking for a loan. These arrangements commonly involve the use of an online platform, such as a website.
