P2P Lending Licence Support | Pre-licensing Assessment | Application Management | Post-licensing Risk and Compliance Management

We offer a comprehensive set of solutions to help you obtain and maintain a P2P Lending Licence tailored to:

• Your business goals and objectives
• Your client demographics
• Your countries of operation
• The size of your business
• The available human and technology resources
• Your risk appetite
• Your governance structure
• The products that you offer
• P2P Lending' obligations covering risk and compliance management under financial laws and regulations, the applicable financial licensing requirements, AML/CFT laws, privacy laws, consumer protection laws, and more

We have designed our regulatory licensing solutions to help you navigate the complexities of the P2P lending licensing regime in a commercially oriented and goal-focused manner, providing effective support for all stages of the P2P platforms' licensing process, including but not limited to the following aspects:

• P2P Lending Licence Guidance: Advising on a wide range of aspects associated with P2P lending licence as it relates to your specific situation
• Pre-licensing assessment: Covering compliance gap analysis as well as risk and compliance assessment
• Pre-licensing support:
• Drafting the necessary policies and procedures to help you comply with the P2P lending licence conditions and financial markets' regulations
• Developing internal controls to help you meet your obligations under the P2P lending licensing regime
• P2P Lending Licence Application Support: Covering the entire licensing process
• Post-licensing Support: Covering
• Ongoing compliance advice
• Comprehensive second-line risk and compliance support, including leading the implementation of your risk management framework (RMF), compliance management framework (CMF), compliance monitoring program (CMP), compliance calendar and checklist, ongoing risk assessments, internal and external reporting, outsourced providers' management, and more
• AML/CFT advice
• AML/CFT compliance management
• Compliance assurance solutions, including compliance assurance program (CAP) development, implementation, and internal control testing

 

Jurisdictional Coverage of Our P2P Lending Licence Solutions

We can help you apply for the P2P lending licence or its equivalents in the following jurisdictions:

• • Australia: For more information on the Australian P2P lending licence equivalent, the Australian Financial Services Licence (AFSL) for Operating a P2P Lending Platform, please visit our P2P Lending ACL page.
  • New Zealand: For more information on the New Zealand P2P lending licence equivalent – FMA Licence for P2P Lending Services under the Financial Markets Conduct Act 2013 (FMCA), you can visit our New Zealand P2P Lender Licence page.
  • United Kingdom: For more information on the United Kingdom P2P lending licence equivalent – FCA Authorisation for Operating a P2P Lending Platform under the Financial Services and Markets Act 2000 (FSMA), you can visit our FCA Authorisation page for P2P platforms.
  • Singapore: For more information on the Singapore P2P lending licence equivalent – Capital Markets Services (CMS) Licence for P2P Lending Platforms under the Securities and Futures Act (Cap. 289) and the Financial Advisers Act (Cap. 110), you can visit our Singapore P2P Lending Platform Licence page.
  • Prominent Financial Centres and Offshore Tax Havens: We also offer P2P lending licensing solutions for prominent financial centres and offshore tax havens.

 

Service Coverage

We offer comprehensive support for a wide range of P2P lending licence’ applications tailored to meet the specific needs of the following businesses:

• Lending-Based Peer-to-Peer Platforms
• Real Estate P2P Lending Platforms
• Debt P2P Lending Platforms
• Microfinance P2P Lending Platforms
• Community-Based P2P Lending Platforms

You can find more information about our P2P lending licence solutions below:

 

Preparing for P2P Lending Licensing Regime

Pre-licensing Compliance Assurance

Our P2P lending licence solutions cover the following focus areas:

• Compliance Goals Analysis: We review your business-specific goals and resources against the suitability criteria for a P2P lending licence
• Initial Consultation: We provide guidance on potential risk and compliance issues that may arise during the P2P platforms' licensing process
• Choosing the Right Jurisdiction: We assist in evaluating regulatory, risk, and compliance environments to determine the most suitable jurisdictions for your P2P lending licence, tailored to suit your:

• business objectives,
• operational capacity,
• client base,
• markets of operations,
• and other relevant factors

• Gap Analysis: We identify gaps between your existing operations and regulatory requirements and help you align them in a commercially oriented manner
• P2P Lending Licence Application Plan: We help you establish a roadmap to effectively meet the P2P lending licence requirements

 

 

P2P Lending Licence Guidance

Selecting the right compliance model is crucial not only for navigating the licensing process but also for maintaining ongoing compliance and avoiding potential breaches. Our P2P platforms' licensing solution covers:

• Compliance Model Selection: To help you best comply with the P2P platforms' licensing regime and related risk and compliance obligations.
• Corporate Governance Model Selection: We offer practical guidance on establishing effective corporate governance practices that support your risk and compliance oversight.
• Operations Model Advisory: We advise you on optimising your operational and governance models to help you efficiently comply with the licensing requirements for P2P lenders and other applicable P2P lending obligations, keeping in mind your specific circumstances, available resources and business goals.

 

Entering P2P Platforms’ Licensing Environment

We help businesses transition from an unregulated environment to operating under the P2P lending licensing regime, helping them meet their obligations as a P2P lending licence holder.

We also assist already regulated businesses in aligning their existing risk and compliance management structures with the P2P platforms' licensing regime requirements.

Our focus areas for this service include:

• New businesses
• Existing P2P lenders operating in unregulated markets
• Licensed P2P lending platforms expanding into foreign jurisdictions
• Financial institutions and/or service providers with established risk and compliance frameworks seeking to offer regulated P2P lending facilitation as a new product.

 

Multi-Jurisdictional Compliance

With years of experience managing risk and compliance obligations for businesses operating under multiple financial licences across various jurisdictions, we help businesses remain compliant with P2P lending obligations globally.

 

P2P Lending Licence and Wholesale Markets

Getting a P2P lending licence may not always be the best fit for all. For example, a retail market expansion may not always align with your goals or the products you offer.

Operating in the wholesale environment can sometimes be a more suitable option. We offer a wider range of risk and compliance management solutions to assist P2P Lenders that:

• Operate in the wholesale markets
• Operate under exemptions from the P2P lending licensing regime
• Offer services to sophisticated, eligible, and wholesale investors

 

We help them comply with the regulatory compliance obligations that are not caught by the P2P platforms' licensing regime, but that still have to be addressed and handled, including:

• Advertisement Rules
• Fair Dealing Regulations
• Risk Management
• Outsourced Providers' Oversight
• Restrictions on offering services to retail investors without a licence (an integral part of the P2P platforms' licensing regime)
• Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) laws and regulations
• Data Management Laws and Regulations

 

For example, a retail market expansion may not always align with your goals or the products you offer.

Operating in the wholesale environment can sometimes be a more suitable option. We offer a wider range of risk and compliance management solutions to assist derivatives issuers that:

• Operate in the wholesale markets
• Operate under exemptions from the derivatives issuers' licensing regime
• Operate undera P2P lending licence limited to sophisticated, eligible, and wholesale investors

 

We help these businesses comply with the regulatory compliance obligations that still apply despite the absence of the P2P platforms' licensing regime or apply under the wholesale-only licensing framework, including:

• Advertisement Rules
• Fair Dealing Regulations
• Risk Management
• Outsourced Providers' Oversight
• Restrictions on offering services to retail investors (an integral part of the P2P platforms' licensing regime)
• Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) laws and regulations
• Data Management Laws and Regulations

 

P2P Lending Licence Application

We assist with your licence application through ongoing engagement in the P2P platforms' licensing process:

• Document Compilation and Review: We compile and review all required supporting documents to support your P2P lending licence application.
• Application Form Completion: We help you complete the forms so that all material information is accurate and complete.
• Pre-Submission Review: We can arrange a pre-submission review session with key stakeholders to ensure all parts of your application are understood and agreed upon. This session aligns application details with the actual situation, removing ambiguity.
• P2P Platforms' Licensing Process and Regulatory Liaison: We manage the end-to-end submission process, maintaining clear and effective communication channels throughout the licensing process.
• Timeline Management: We closely monitor and adhere to all necessary deadlines, providing timely updates and adjustments to keep the application process on track.

 

Resolving P2P Lending Licence Issues

Having competent compliance advisors is crucial when licensing issues arise. Therefore, our P2P lending licence solutions include a range of services to address and resolve these issues effectively:

• Remediation Solutions for P2P lending Licence Applicants: We address and remediate risk and compliance issues identified by regulators, helping your operations align with P2P lending licensing regime requirements.
• Specific Licence Conditions Compliance: We can help you manage additional conditions imposed on your P2P lending licence, developing a tailored action plan to maintain compliance and facilitate the eventual removal of these conditions with minimal disruption to your business operations.
• Licensing Issues Handling: We address common licensing issues encountered during the P2P platforms' licensing process, providing you with solutions to navigate and resolve these challenges efficiently.
• Further Information: You can visit our Compliance Remediation Solutions page for more information.

 

Post-Licensing Support

We offer a full range of ongoing risk and compliance solutions for licensed P2P lenders. Our services include, but are not limited to:

Ongoing Risk and Regulatory Compliance

• P2P Lending Obligations Guidance: We can advise your risk, compliance, management and other teams on meeting the requirements of the P2P lending licensing regime and other regulatory compliance obligations. You can visit our Compliance Consultancy Service page for more information.
• Regulatory Risk and Compliance Management: We provide dedicated compliance managers to manage your overall compliance. For more information, visit our Specialised Compliance Management Solutions page for P2P lenders.
• Compliance Assurance Solutions: As part of our compliance assurance solutions, we offer:
• Compliance Assurance Program (CAP) development and testing options
• Internal Controls Design option
• Internal Controls Testing option
• Internal AML/CFT Review option
• Statutory AML/CFT Audit option
• Compliance Training Solutions: We offer training programs to different teams on complying with:
• P2P lending obligations for risk and regulatory compliance management. You can visit our Compliance Training page for more information.
• P2P Lenders’ AML/CFT obligations and operational best practices for fraud prevention. You can visit our AML/CFT Training page for more information.
• Crisis Management Planning: We can develop proactive strategies to manage potential compliance crises effectively.
• Anti-Money Laundering (AML) and Counter Terrorist Financing Solutions: We provide a full range of AML/CFT solutions for P2P lenders. For more information, visit our Specialised AML/CFT Solutions page for P2P lending platforms.
• Advanced Compliance Technologies: We can assist you with selecting and integrating advanced technology solutions, such as compliance automation tools and regulatory technology (RegTech), to streamline compliance processes without disrupting operations.
• Risk and Compliance Framework Adjustments: Including adjustments to risk management frameworks (RMFs), compliance monitoring programs (CMPs), compliance management frameworks (CMFs), and other core procedures and policies to align them with:
• new business goals
• regulatory changes
• changes in your operations
• evolving market conditions
• changes in stakeholders’ risk appetites (your banking partners, insurance companies, liquidity providers, etc.).

 

 

Risk and Compliance Obligations for P2P Lending Licence Holders

P2P Lending Licence holders are subject to various obligations set out in applicable laws and regulations. They are also expected to uphold standards for their conduct and internal operations, as outlined in regulatory guidance or accepted industry practices.

We can help you address these obligations and expectations through comprehensive support in the different areas. The list below is not exhaustive:

P2P Lending Licence and Regulatory Compliance Obligations

• Compliance Management Systems: We can help you establish effective compliance programs, compliance monitoring plans, controls testing methodologies, compliance calendars and more.
• Risk Management Frameworks: We can help you develop comprehensive risk management frameworks to fulfil P2P lending obligations for identifying, assessing, and mitigating operational, regulatory, strategic, financial and other types of risks.
• Policy and Procedure Development: We can help you draft and implement policies and procedures aligned with the P2P platforms' licensing requirements.
• Compliance Monitoring Plans: We can oversee the execution of your CMPs, covering ongoing monitoring of your compliance obligations under the P2P lending licensing regime.
• Internal Control Testing and Compliance Assurance: We can conduct internal reviews and audits of your controls to test their effectiveness and compliance with the applicable regulatory standards.
• Capital Adequacy Requirements: We can help you implement controls to comply with capital adequacy requirements, helping your businesses meet P2P lending obligations for maintaining required financial resources.
• Financial Auditing Standards: We can assist in establishing procedures to help you comply with the audit and assurance requirements under the P2P lending licensing regime.
• Digital Payment Token Services: Where applicable, we can assist in developing controls to comply with regulations for digital payment tokens, cryptocurrencies, and digital assets, including obligations under the P2P lending licensing regime and AML/CFT requirements for transaction monitoring and reporting.
• Investor Classification and Eligibility Controls: We can help you implement processes to assess investor eligibility and classification (e.g. retail vs wholesale/sophisticated), in line with jurisdictional P2P lending limits, onboarding obligations, and investment caps.
• Offer Document and Disclosure Controls: We can help you implement controls for preparing and issuing offer documents or pitch materials, including jurisdiction-specific disclosure requirements under relevant P2P lending or securities legislation.
• Credit Intermediation and Licensing: We can help you prepare controls and procedures to manage credit licensing risks where your platform activities may fall within the scope of credit assistance or licensing activities.

 

P2P Lending Licence and Operational Oversight Obligations

• Oversight of Outsourcing: We can establish a set of effective controls to comply with P2P lending obligations for overseeing outsourced services, covering related obligations under AML/CFT compliance, ISO requirements, and more.
• Structures for Governance: We can help you establish effective governance structures to comply with P2P lending obligations and develop an effective approach to overseeing your risk exposure and compliance status across different functions of your business.
• Senior Management Accountability: We can help you comply with P2P lending obligations for senior management and key staff conduct and competence.
• Maintaining Operational Resilience: We assist in developing continuity plans to meet P2P lending obligations for operational resilience, helping critical business services withstand disruptions.
• Managing Technology Risks: We provide guidance on technology risk management obligations under the P2P lending licensing regime.
• Platform Access and Due Diligence on Borrowers: We can help you develop onboarding, due diligence, and monitoring controls for businesses or issuers raising funds through your platform, including AML/CTF obligations, background checks, and suitability assessments.
• Dual-Sided Platform Conflict Controls: We can help you develop documented procedures to identify and oversee conflicts of interest where your platform facilitates both lending and borrowing activity.
• Contract Structure and Licensing Exposure: We can help you assess your lending structure and document controls where nominee, trust-based, or custodial arrangements may trigger additional licensing authorisations.

 

 

P2P Lending Licence and Market Integrity/Transparency Requirements

• Standards for Market Conduct: We can help you implement controls for P2P lending obligations to maintain fair and transparent market conduct, including preventing manipulation and insider trading.
• Principles for Fair Treatment: We can help you implement controls to comply with expectations that cover adherence to principles of fair treatment and transparent communications with clients.
• Standards for Conduct and Disclosure: We can help you comply with P2P lending licensing standards for conduct and disclosure.
• Product Suitability and Governance: We can establish tailored controls to help licensed P2P lenders comply with product suitability and governance obligations, including risk management and governance arrangements across the product life cycle.
• Protection of Client Assets: Where escrow is outsourced or not in scope, we can help you comply with P2P lending platforms' licensing obligations to protect and segregate client assets.
• Resolution of Disputes: We can help you establish effective mechanisms for dispute resolution and complaints management, particularly for retail clients.
• Advertising and Communications Oversight: We can help you develop controls for your marketing and promotional materials to ensure compliance with restrictions on advertising P2P lending offers, including social media monitoring and fair representation of investment risks.

 

P2P Lending Licence and Resource Management Obligations

We can help you comply with the following requirements of the P2P lending licensing regime:

• Adequacy of Resources: Covering financial, technological, human and other resources.
• Competence of Professionals: Covering key personnel, their necessary skills, knowledge, and professional competence.
• Our focus areas include:

• Assessment and Gap Analysis: We can help you evaluate the adequacy of your financial, technological, and human resources against the requirements of the licensing regime.
• Resource Allocation Plans: We can help you develop strategies to optimise resource allocation, covering sufficient capacity for compliance, trading, operations, banking, customer support and other functions and departments.
• Technological Solutions: We can recommend and implement RegTech tools to streamline compliance processes, such as transaction monitoring, reporting, and audit trails.
• Key Personnel Assessment: We can help you assess the skills, qualifications, and experience of key personnel to identify areas for improvement.
• Training and Development Programs: We can design and deliver targeted compliance training programs to upskill personnel in compliance, risk management, and P2P lending regulations.
• Ongoing Training: We can help you create a framework to support continuous education for advisors and representatives on licensing obligations, market integrity, and client interaction standards.
• Regulator Liaison: We can act as an intermediary with regulators to address queries and help you demonstrate compliance with resourcing obligations.
• Staff Vetting and Rescreening: We can help you develop a framework for vetting and rescreening staff in line with the requirements of the licensing regime, AML/CFT laws, and other applicable regulations, with checks calibrated to the level of risk and responsibility associated with each role.
• Investment Cap and Transaction Limits Controls: We can help you implement automated and manual controls to monitor investor contribution limits, deal caps, and maximum investment thresholds required by the licensing regime.
• Additional Licensing Triggers: We can help you assess your platform structure and prepare controls to address licensing triggers where pooled funds or trustee arrangements may require authorisation to operate a managed investment scheme or custodial service.

 

 

P2P Lending Licence and Reporting

• Regulatory Reporting: We can help you prepare and submit periodic and ad-hoc reports covering:
  • P2P Lending Obligations
  • P2P lenders’ AML/CFT obligations (SMRs, STRs, SARs, cross-border transaction reports, cash transaction reports, and other reporting obligations)
  • P2P lending obligations under financial market conduct laws and regulations
• Compliance Documentation: We can help you develop and maintain the necessary documentation to meet record-keeping obligations under various laws and regulations.
• Audit Readiness: We can prepare you for audits and reviews to demonstrate compliance with regulatory requirements, provisions of the P2P lending licensing regime, applicable operational standards, and more.