In Budget 2014, the government announced that it would introduce the ISA (IFISA), which would allow P2P credit agreements to be included in an ISA tax liquidator. At the same time, consultation on P2P agreements would become a regulated activity. Consultation on P2P agreementsThe Environment Committee is saturated by the fact that from 6 April 2016 there is also a new regulated activity of „advice on P2P agreements“ (Article 53(2) of the Regulatory Activities Order). This requires companies to have the authorization of the corresponding ACF. Advice on P2P contracts is subject to all aptitude, research and competence requirements applicable to investment advice. If you decide that your company will not discuss P2P agreements now or in the future and you want to remove the authorization, you can submit a variation of the authorization request via Connect. Companies must, among other things, take appropriate measures to ensure that personal recommendations are suitable for their client. As stated in our policy statement on separating client money on credit-based crowdfunding platforms, innovative financial ISA and regulated peer-to-peer agreement advisory (PS16/8), this requirement extends from 6 April 2016 to personal recommendations regarding P2P agreements. (P2P agreements are also referred to as Article 36H agreements and should not be confused with P2B when individuals lend to companies or with B2B when companies lend to companies. For more information and information about crowdfunding, follow these links – FCA Crowdfunding Review, Summary of Crowdfunding Regulation). IFISAOn was born on April 6, 2016 a new member of the ISA family, which continues to grow. The Innovative Finance Individual Management Account (IFISA) can hold P2P contracts since that date.

This practice note examines the regulated activity of operating an electronic system with respect to consumer credit, including the essential elements of operating an electronic system with respect to credit, the importance of the business object in the operation of an electronic system, and the rules applicable to enterprises authorized to operate an electronic credit system. For more information on regulated advisory activities on credit-based crowdfunding contracts (i.e. advice on Article 36H – see below), please see the practice: advice on stakeholders` commodities, investments, pension transfers and credit-based crowdfunding arrangements. To find out more about the new authorisation for the regulated activity of „advice on P2P agreements“, and what this means for the authorisations of your company 131the regulated activity, which is set out in Article 53(2) of the Regulation on Regulated Activities (Investment Advice), which is summarized: advice to a person when the advice is: at the moment, there is no obligation to deliberate on P2P agreements in order to obtain independent status, allowing companies to safely decide not to do so at this time. This will be a good decision for many companies, as consulting in this area will require some effort around the GTC and especially research and due diligence in a new product sector and for many others. And of course, there could be repercussions on IP coverage, which should be carefully weighed and discussed with your IP broker and/or insurer. Companies that currently have a licence for the regulated activity of „investment advice“ have been automatically amended to add, from 6 April 2016, the new regulated activity „Advice on peer agreements (P2P)“. This implies that companies have obtained permission to advise on P2P agreements by default, which allows companies that intend to engage in this area to do so – but that they must take into account the need for consultants to demonstrate competence in all aspects on which they advise clients. It is likely that ig companies would like to withdraw this authorization.

Any company that does not intend to advise on P2P agreements can apply for a quota variation to have the authorisation withdrawn with this shortcut and at P2Padvice@fca.org.uk although P2P has been around since 2005, as it is generally called, this type of financing is still relatively unknown in Britain. . . .