At that time, the “P2P Agreement Advice” would become a new regulated activity. IFISAOn April 6, 2016, a new member of the isA family was born in constant growth. The Innovation Finance Individual Savings Account (IFISA) may have been containing P2P agreements since then. In budget 2014, the government announced the introduction of the Innovative Financial ISA (IFISA), which would allow peer lending agreements (P2Ps) to be included in an ISA tax system. On March 16, 2016, legislation was passed that contains a provision that, on the whole, means that companies that currently have the authorization for the regulated “investment advisory” activity automatically have their permissions to add the new regulated “advice to P2P” activity effective April 6, 2016. According to the CFA, consultants must take appropriate steps to ensure that their personal recommendations on P2P investment opportunities are appropriate for their clients and other incentive rules apply. Those who advise p2P agreements must also be “properly monitored and deemed competent to carry out this activity (including obtaining an appropriate qualification),” he said. Advice on P2P Agreements Is it any surprise that a new regulated “P2P advisory” activity will also be in place from 6 April 2016 (Article 53, paragraph 2, regulatory activities regulation). This requires companies to have the corresponding authorization from the ACF. These are both companies with authorization, but for which the board is not their main activity (for example. B general insurance intermediaries) and companies that have “advice on investment activities in non-investment insurance contracts.” By default, companies have been allowed to consult P2P agreements, so that companies wishing to engage in this area can do so – but must take into account the need for consultants to be competent in all aspects on which they advise clients. According to the FCA, investors who place their money in a personal recommendation from a financial advisor in P2P investment proposals will “use the Financial Services Compensation Scheme.” The aim is to “protect them from the failures of licensed consulting firms,” he said.
The regulator also stated that retail investors will be able to make claims regarding the service they receive regarding advice on P2P agreements with the Financial Mediation Service.