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P2P Online Lending Supervision in the UK: Experience, Practices and Enlightenments (No.121, 2019)


By Yan Yan, Zhang Weiqiang, Deng Ying, Zhang Shiguo, Song Zhe & Li Yifei, Research Team on “Regulation of Fintech Innovation,” Research Institute of Economics, Management World Magazine

Research Report, No.121, 2019 (Total 5621) 2019-7-25

Abstract: The UK is home of P2P (peer-to-peer) online lending and the first country to officially acknowledge its role in the market. Since 2014, the regulation of P2P online lending in the UK has been revised many times, and the new regulation was released in June 2019. With the rapid development of P2P online lending market, the platform business model in the UK is becoming increasingly sophisticated. The Financial Conduct Authority (FCA) of the UK divided P2P online lending platforms into three types including channel-type, pricing-type and commission-type according to different business models. FCA exercises different degrees of regulation to platforms with different risk levels, and the UK’s experience makes good reference for us in regulating China’s increasingly complicated online lending market. First, the regulation measures can be fleshed out gradually through evaluating the results of regulation measures. Second, regulation by category can realize precise supervision. Third, the exit mechanisms of online lending platforms need to be established and improved. Fourth, financial consumers’ rights and interests need to be properly protected.

Key words: P2P online lending, regulation, policy options