keep The Financial Services and Markets Act 2000 (Collective Investment Schemes) (Amendment) Order 2015
The Financial Services and Markets Act 2000 (Collective Investment Schemes) (Amendment) Order 2015 amends the 2001 Order to exclude certain peer-to-peer lending arrangements from the definition of collective investment scheme. It carves out electronic lending platforms (operating under article 36H of the Regulated Activities Order) from CIS regulation, covering platform operations, money-holding arrangements, lender compensation mechanisms, and related wind-up arrangements.
Britons would be worse off if this regulation were deleted because it is a deregulatory measure that exempts peer-to-peer lending platforms from the heavy regulatory burden of the collective investment scheme regime. Removing it would reimpose restrictions that increase compliance costs for P2P platforms, reduce competition in lending markets, raise borrowing costs for consumers, and lower returns for lenders. This Order sensibly distinguishes innovative fintech lending platforms from traditional pooled investment schemes, allowing P2P markets to operate with appropriate but lighter-touch oversight.