P2P lending service Bondora is now authorised and regulated by the UK Financial Conduct Authority

Bondora is now authorised and regulated by the UK based Financial Conduct Authority (FCA). The FCA supervised peer-to-peer lending license is the only regime available anywhere in Europe that subjects peer lenders under regulatory oversight, supervising peer lending companies. Bondora is one of the selected few peer lenders who is now operating under a license and probably the first non-UK p2p lending company licensed by FCA.

“The authorisation and regulation are good news for our customers across Europe,” commented the CEO of Bondora, Pärtel Tomberg and added that customers will greatly benefit from the supervision of the FCA as well as the additional requirements Bondora needs to comply with in order to maintain the authorisation. “We are likely the only peer lender outside of UK who obtained this authorisation and this type of regulation is something that we have been looking forward for a number of years,” added Tomberg.

The interim licence increases the strength of the company by making sure that Bondora complies with the rules set by the regulator. These regulations will ensure that Bondora and other regulated peer to peer lenders provide a more secure, transparent and sustainable service to its customers. These provisions include among others conduct of business rules (in particular, around disclosure and promotions), minimum capital requirements, client money protection rules, dispute resolution rules and a requirement for Bondora to take reasonable steps to ensure existing loans continue to be administered if the firm goes out of business. Bondora already complies with most of the regulations however there is a transitional period during which all processes need to be made compliant with the standards required.

Until now Bondora, as well as most other peer lenders, operated without a specific license and regulation since a suitable regulatory regime did simply not exist. The UK based Financial Conduct Authority started issuing specific peer licences from April 2014.

Bondora is the meeting place that unites investors and borrowers from all corners of the world. Bondora provides easy access to two mutually beneficial solutions: borrowers find the best available financing with affordable monthly payments, while investors generate profit on loan interest. The company serves more than 90 000 Customers from 29 different countries and has issued over 16 million EUR in loans and its users have earned more than 1.6 million EUR in interest income.

Bondora is entered on the Financial Services Register under firm registration number 665420. Additional information can be found from the homepage of the Financial Conduct Authority (http://fca-consumer-credit-interim.force.com/CS_RegisterSearchPageNew).

(Source: company management)