To ask Her Majesty's Government whether they or the Financial Conduct Authority have monitored rates of return projected by peer-to-peer lenders over the last two years; and whether such returns were assessed as to the (1) reasonableness of the projection, and (2) business record and experience of those managing the lending platform.
The Government believes that peer-to-peer platforms can deliver innovative forms of finance for both consumers and business that can provide competition in the marketplace and, as such, is keen to see the sector continue to grow and evolve while ensuring that consumers are adequately protected.
The Government continues to monitor the development of the sector and engages regularly with peer-to-peer platforms to understand their business models. We do not directly monitor the rates of return offered.
The Financial Conduct Authority (FCA) is operationally independent from Government. The question as it relates to the FCA has been passed on to the FCA. The FCA will reply directly to Lord Myners by letter. A copy of the letter will be placed in the Library of the House.