Specialised Solutions for P2P Lending Platforms’ Compliance Management

We offer a comprehensive set of risk and compliance solutions tailored to a variety of peer-to-peer (P2P) lending platforms' compliance obligations. We can help you comply with P2P lending regulations in a commercially oriented and goal-focused manner, providing a tailored approach to P2P lending platforms' compliance management with regard to your specific circumstances, including:

• Your commercial objectives
• Your P2P lending solutions and products
• Your business size
• Your technology and human resources
• Your risk appetite
• Your governance structure
• Your client demographics
• Your countries of operation, their applicable laws, and relevant P2P lending licensing requirements and regulations, including key aspects such as outsourced providers' monitoring, compliance training, risk management, audit, and assurance.
• Any related compliance obligations, including, but not limited to, P2P lending platforms' obligations under privacy laws, anti-money laundering and counter-terrorist financing (AML/CFT) laws, fair trading laws, and more.
• P2P lending platforms' compliance assurance obligations, including internal control design and testing, implementation of compliance calendars, management plans, compliance assurance programs and other second and third-line compliance requirements.
• Specific operational compliance requirements for P2P lending platforms, including but not limited to:
  • Client due diligence and onboarding
  • Surveillance and monitoring
  • Recordkeeping
  • Conflict of interest management
  • Regulatory technology (RegTech) integration
  • Internal reporting
  • External reporting
  • Transaction execution
  • Regulatory Filings

 

 

What Jurisdictions Do Our Compliance Solutions Cover?

Our compliance solutions extend across major financial markets and cover P2P lending regulations and P2P lending licensing requirements in the following jurisdictions:

• Australia - AFSL Licensing for P2P Lending Platforms: We assist peer-to-peer lending platforms with AFSL applications, ensuring compliance with ASIC's requirements under the Corporations Act 2001.
• New Zealand - FMA Licensing for P2P Lending Services: We guide p2p lending platforms through the licensing process with the FMA, ensuring compliance with the Financial Markets Conduct Act 2013.
• United Kingdom - FCA Authorisation for UK P2P Platforms: We support peer-to-peer lending platforms in obtaining FCA authorisation, adhering to the UK's regulatory standards for peer-to-peer lending platforms under the Financial Services and Markets Act 2000.
• United States - SEC Registration and State Licensing: We provide consultancy for SEC registration under the Securities Act of 1933 and the Securities Exchange Act of 1934, and navigate state-specific lending licenses for p2p lending platforms.
• European Union - ECSP Regulation Compliance: We advise on compliance with the ECSP Regulation (EU) 2020/1503 for peer-to-peer p2p lending platforms operating within the EU, facilitating cross-border services.
• Singapore - CMS Licence Application for P2P Lending: We assist with the CMS Licence application process for p2p lending platforms, ensuring adherence to MAS guidelines under the Securities and Futures Act (Cap. 289) and the P2P Lending Platforms Act (Cap. 110).
• Low Tax Jurisdictions, including:

• Cayman Islands - CIMA Registration: We advise on the necessary steps for peer-to-peer lending platforms to register or obtain licences under the Money Services Law or other applicable regulations, in line with the Cayman Islands Monetary Authority's (CIMA) guidelines and compliance expectations within the broader financial services framework in the Cayman Islands.
• Bermuda - Digital Asset Business Licensing: We support p2p lending platforms in navigating Bermuda's Digital Asset Business Act 2018 for potential licensing with the BMA.
• Gibraltar - DLT Provider Licensing: We assist with the application process for a DLT Provider Licence in Gibraltar for peer-to-peer lending platforms utilising blockchain technology under the Financial Services (Distributed Ledger Technology Providers) Regulations 2017.
• Isle of Man - Financial Services Licensing: We guide p2p lending platforms through the licensing process with the IOMFSA, ensuring compliance with the Isle of Man's Financial Services Act 2008.
• Malta - Financial Institution Authorisation: We help peer-to-peer lending platforms comply with Malta's Financial Institutions Act 1994 for potential licensing by the MFSA.

 

What types of Peer-to-Peer (P2P) Services Do We Support?

Our P2P lending compliance solutions cover the following types of financial institutions and P2P lending platforms:

• Lending-Based Peer-to-Peer Lending Platforms: These platforms facilitate loans between individual borrowers and investors, providing an alternative to traditional banking and traditional lending methods.
• Real Estate P2P Lending Platforms: Platforms specialising in loans for real estate projects, adhering to relevant real estate investment regulations.
• Debt P2P Lending Platforms: Platforms managing the issuance of debt instruments, ensuring compliance with lending and securities laws.
• Microfinance P2P Lending Platforms: Platforms providing small loans to entrepreneurs in developing countries, ensuring adherence to microfinance regulations.
• Community-Based P2P Lending Platforms: Platforms funding projects benefiting specific communities.

 

P2P Lending Platforms’ Compliance Advisory

Our focus areas include:

• Detailed Compliance Advice: Covering P2P lending platforms' compliance management issues across the first, second, and third lines, as well as matters related to effective compliance with P2P lending regulations and P2P lending licensing requirements.
• Banking Relationships Advice: On risk and compliance issues related to managing and expanding relationships with banks, liquidity providers, and other financial institutions to help you meet their risk appetite requirements, anti-money laundering and counter-terrorist financing requirements, fraud prevention and recall volume expectations, and other compliance-related and operational standards.
• Operational AML Advice: Advising support, onboarding, KYC, operating and other teams on the day-to-day onboarding and support queue management, effective AML/CFT resource allocations, and operational improvements, helping you maintain the overall customer experience and efficiency while remaining compliant with the P2P lending platforms' AML/CFT requirements.
• Operational Compliance Advice: Advising compliance, management, technology, and support teams on the day-to-day compliance with P2P lending regulations, focusing on internal processes and critical internal controls for effective P2P lending platforms' compliance management.
• Risk Management Advice: Covering risk rating and methodologies, risk assessments, management, and mitigation for various risk types faced by P2P lending platforms, including regulatory, ML/TF, fraud, data protection, and operational risks. We help you safeguard against potential compliance breaches and comply with risk management obligations under P2P lending licensing requirements and other applicable laws and regulations.
• Compliance Framework Advice: To help you create or enhance your compliance management framework, identify gaps and areas of improvement, meet the P2P lending platforms' compliance obligations effectively, improve internal governance and reporting, and optimise them for market expansion and growth.
• P2P Lending Platforms' Licensing Advice: We can guide you through the licensing process, help you apply regulations to your specific circumstances and business environment, and meet P2P lending licensing requirements to become licensed or maintain it.
• Peer Benchmarking and Best Practices: We can help you benchmark your compliance practices against peers and applicable regulatory compliance guidance, identify areas for improvement and adopt best practices for enhanced compliance.
• Government Agencies Liaison Advice: We provide strategic guidance to senior management and compliance teams on maintaining and managing relationships with external bodies, including regulators, AML/CTF supervisors and law enforcement agencies, focusing on long-term compliance strategies and proactive engagement.
• Specific P2P Lending Platforms' Compliance Issues: We can help you resolve specific risk or compliance issues related to P2P lending regulations and compliance obligations, including but not limited to external audits and reviews, reporting, oversight, difficult clients or transactions, expansion challenges, compliance management issues, process optimisation, regulatory challenges you may encounter and more.
• Further information: You can visit our Regulatory Compliance Consulting Solutions page for a comprehensive list of advisory services we offer to P2P lending platforms and other licensed financial institutions, financial services providers, and regulated businesses.

 

 

Reporting and Regulatory Liaison Solutions for P2P Lending Platforms’ Compliance

• Regulator Liaison Management: Providing operational guidance to senior management and compliance teams on managing relationships with regulators, AML/CFT supervisors, police bodies, privacy commissioners, and other government entities. This includes handling requests for information, responding to ad-hoc regulatory inquiries, managing findings from audits and investigations, managing compliance with reporting obligations for P2P lending platforms and more.
• Board and Committee Reporting: Facilitating structured reporting workflows for various committees and board delegates, including risk, compliance, and audit committees, focusing on your current compliance status, deviations from your risk appetite, changes in risk ratings and any operational compliance updates to ensure that governance structures are well-informed and aligned with compliance management practices.
• Compliance Performance Metrics: Developing and presenting comprehensive compliance performance metrics to the board or relevant committees, offering insights into your compliance effectiveness and identifying points for improvement in key compliance areas, including compliance training, fraud prevention, compliance monitoring, risk rating and assessment, controls effectiveness, adherence to your compliance calendar, regulatory technology (RegTech) performance, and more.
• Internal Audit Reporting: We can help you increase the effectiveness of the internal audit to make its findings reflect your actual performance against the P2P lending platforms' compliance obligations. This includes developing tailored methodologies for the auditors, preparing the necessary audit evidence and reviewing audit results. The goal is to ensure that audit procedures and outcomes directly contribute to maintaining and enhancing your compliance status and internal controls' effectiveness.
• AML/CFT Reporting Compliance:  We help with the implementation of effective AML/CFT reporting processes, aligning with specific anti-money laundering regulations for internal oversight and prompt escalation of critical AML issues within your business to help the management receive a clear overview of your AML/CFT compliance status.
• Transactional Reporting: Implementing effective transactional reporting procedures to help with P2P lending platforms' compliance management of reporting obligations under various laws and regulations, including submitting SAR, SMR, STR, PTR, TTR, specific reportable matters under the P2P lending licensing requirements and other externally reportable transactions and activities.
• Internal Quality Assurance Reporting: While second-line control testing is crucial for complying with P2P lending regulations, including P2P lending licensing requirements, first-line quality assurance results are equally important for effective risk and compliance management. We help organise effective reporting lines, tailor reporting content to your specific circumstances, products, and team size, and establish a structured approach to responding to reporting outcomes.

 

 

Comprehensive Compliance Management Solution for P2P Lending Platforms

Our compliance management services include, but are not limited to, the following:

• P2P Lending Platforms' Compliance Management Leadership: We act as your Compliance Leads and Compliance Managers, fully managing compliance obligations under the applicable P2P lending licensing requirements, laws, regulations, industry codes, and regulatory guidance.
• Second-Line Compliance Management: We offer a full range of second-line compliance assurance solutions, including internal controls testing for operational, compliance, marketing, legal and other risks, as well as managing issue closure control testing and more.
• Supporting the Board in Strategic Compliance Management: Advising on the necessary compliance resourcing, budget, tools, role structuring, and compliance functions' structure to support your specific business objectives within your risk appetite and risk management framework.
• Compliance Project Management: Effectively coordinating between senior management, committees, legal advisers, risk and compliance functions, outsourced providers, and different departments, including product development, technology, customer support, operations, assurance, marketing, and others, to help you successfully implement compliance projects across the business.
• Customised Governance Solutions: Tailoring governance frameworks and mechanisms to fit your specific governance structure and effectively comply with P2P lending regulations and other applicable obligations. Whether your business is locally oriented, a start-up, undergoing expansion, part of a multinational group, has a listed parent company or is undergoing restructuring, we tailor the oversight of P2P lending platforms' compliance management to your business case.
• Stakeholder Management and Reporting: Reporting to the board, committees, shareholders, regulators and other stakeholders. Providing management and the board with comprehensive compliance reports that cover your compliance with P2P lending platforms' compliance obligations, regulatory development summary, compliance-related data and statistics, internal controls testing outcomes and more. Also covering the status of your specific compliance-related projects and compliance goals, relevant compliance KPIs, and more.
• Compliance Calendar Implementation: We design and implement compliance management programs and calendars, covering such areas of P2P lending platforms' compliance obligations as policy and key document reviews, control testing, risk assessment and reviews, vendor reviewers, user system access reviews, assurance activities and more.
• Managing Customer Onboarding and Due Diligence: Implementing commercially oriented and compliant processes for KYC information collecting, Know Your Business (KYB), ML/TF risk assessment, PEP and Sanctions screening, CDD and EDD, especially for higher ML/TF risk clients, to help you comply with AML/CFT compliance obligations for P2P lending platforms.
• AML Transaction Monitoring and Reporting: Developing and implementing a set of business-specific ML/TF alerts and red flags to detect and report suspicious transactions to comply with the P2P lending platforms' AML requirements without making AML/CFT compliance a hindrance to business.
• Information Requests and AML/KYC Data Sharing: Handling information requests from law enforcement agencies, AML/CTF supervisors, and other relevant AML/CTF designated entities, such as your banking partners and other essential service providers (liquidity providers, finance providers, etc.), ensuring that you are fully supported in all AML/CTF compliance-related communications.
• Business Expansion Support: Providing support for your business expansion objectives, recognising and assessing new risks, developing and implementing controls and mitigations for them, as well as addressing new compliance obligations and putting in place practical tools and systems to manage them.
• P2P Lending Platforms' Operational Compliance: Including but not limited to:
  • On-the-Ground Compliance: Conducting compliance management meetings, organising routine and ad hoc compliance reporting, overseeing mitigations and controls testing, leading adjustments and enhancements to your internal controls and protocols when required.
  • Compliance Process and Operations Building: Developing effective and compliant procedures and processes to implement your policies, support your operations across different teams and mitigate operational, regulatory and other risks.
  • Outsourced Provider Performance Monitoring: Setting up initial due diligence and ongoing review frameworks for your outsourced providers to help you meet the required service standards for outsourcing under various P2P lending platforms' compliance obligations, including P2P lending licensing requirements.
  • Incident Management and Reporting: We can help you set up effective processes for incident reporting, escalations, and management at different levels of your business.

 

 

P2P Lending Platforms’ Compliance Assurance 

Our services include:

• Compliance Assurance Programs:  We can design and implement your compliance assurance program to maintain enhanced oversight of your compliance with both P2P lending regulations and your internal compliance and risk appetite thresholds.
• Organisation-Wide Risk Assessments: Helping you focus on the specific risks faced by your business, considering its size, products, client types, jurisdictions of operation, delivery channels, financial institutions you interact with, available technology, and other tools. This includes assessing available mitigations, controls, their effectiveness, residual risk ratings, and the plan to move forward.
• Internal Controls Design: We can develop internal controls for various risk types, including regulatory, fraud, operational, strategic, financial, and other risks. Please visit our Internal Controls Design page for more information. 
• Assurance Testing: We conduct assurance testing to verify that the business complies with its policies, procedures, and P2P lending platforms' compliance obligations, including P2P lending licensing requirements. We also assess whether your internal controls effectively mitigate existing risks, including those required to be monitored under the applicable P2P lending regulations. This process includes a compliance controls testing report and, if necessary, a gap analysis.
• Compliance Quality Assurance: We go beyond merely meeting regulatory requirements. We focus on evaluating and enhancing your risk and compliance management processes to ensure they align with your current and future goals, business model, your risk analysis, your current client inflow, and more. We also suggest which compliance processes you can use to meet your goals. Here is an example of this service in the AML/CFT area.
• Assurance Reporting: Compiling testing findings and issuing comprehensive compliance assurance reports, which include:

• Identification of any deficiencies or control weaknesses, with clear explanations and potential root cause analysis.
• Recommendations for corrective actions to address identified issues and enhance compliance effectiveness.
• Evaluation of the overall effectiveness of your internal controls and regulatory compliance monitoring program against your desired assurance level.

• Regulatory Inspection Readiness: We can help your business prepare for external audits and regulatory inspections, reducing the risk of adverse findings related to P2P lending platforms' compliance obligations. This includes conducting mock inspections to identify gaps, reviewing documentation and record-keeping practices to ensure all relevant materials are well-organised and readily accessible, and training staff on their roles in the inspection process. We assist in identifying any missing information and weak points, provide interview preparation, and more to ensure readiness for auditor or regulator review.
• Further information: You can visit our Compliance Assurance Solutions page for more information on our third-line compliance assurance review solutions.

 

Compliance Remediation Solutions

Our focus areas include:

• Compliance Remediation Advice: Assisting P2P lending platforms in effectively addressing and rectifying compliance issues, from minor breaches to significant regulatory challenges, including warnings and action plans.
• Remediation Plan Development: Following the independent review, we assist in analysing the findings to identify necessary remedial actions. We then support P2P lending platforms in devising a detailed plan outlining these actions for submission to your regulator or an AML/CFT supervisor, ensuring the plan is both actionable and compliant with regulatory expectations.
• Remediation Plan Commitment: We help P2P lending platforms complete their remediation plans and prevent non-compliance recurrence.
• Executive Attestation Support: Our services include assisting senior executives in preparing the required attestations to your regulator. This involves confirming that all necessary remedial actions have been undertaken and adequate compliance measures are in place, supported by comprehensive documentation and evidence. This option covers assistance with the removal of any licensing restrictions.
• Further Information: For more information, you can visit our Compliance Remediation Solutions page.

 

Internal Controls Testing for P2P Lending Platforms’ Compliance Management

When it comes to reality versus a nice policy or procedure with nothing else to show for it, it’s often a case where a policy says A, but reality says B. One might ask, why didn’t we test our internal controls before? Or, why didn’t we do it properly? There’s nothing worse than faking compliance instead of actually doing it.

Our second line of compliance defence solutions covers the development, testing, and enhancement of a wide range of controls to ensure compliance with various laws and regulations governing P2P lending platforms' compliance obligations.

We go beyond merely quoting peer-to-peer lending regulations or a selection of licensing requirements, then adding Excel sheets painted in different colours as a supposed source of truth with nothing to show for it.

• We test them.
• We link them to your risk appetite and core risk management documentation.
• We provide relevant suggestions and analysis tailored to your business.

Some of our focus areas for testing the P2P lending compliance requirements include:

 

Regulatory Compliance and Licensing Controls

• Compliance Management Program: P2P lending platforms should maintain robust compliance management systems, including conflict of interest management and AML compliance measures.
• Risk Management Framework: Licensed P2P lending platforms should adhere to comprehensive risk management standards covering various risk types, ensuring robust risk frameworks are in place.
• Financial Auditing: Licensed P2P lending platforms should engage qualified auditors who should conduct regular financial audits to verify the accuracy of financial statements and ensure regulatory compliance.
• Regulated Counterparty Engagement: P2P lending platforms should comply with restrictions on engaging in transactions with financial service providers that are not regulated or authorised by a competent authority.
• Cross-Border Application of Regulations: P2P lending platforms should ensure compliance with specific guidelines and rules regulating the cross-border application of national P2P lending licensing requirements to overseas P2P lending companies offering services to their retail clients in different jurisdictions.
• Platform Security: Peer-to-peer lending firms should implement robust cybersecurity measures to protect sensitive financial data against unauthorised access and data breaches.
• Digital Payment Token Services: With the rise of cryptocurrencies and digital assets, P2P lending networks should ensure compliance with regulations regarding digital payment tokens, which may not be fully covered under traditional lending regulations.

 

Operational Oversight Controls

• Outsourcing Oversight: Peer-to-peer lending platforms should maintain control and oversight over outsourced functions to ensure they do not compromise regulatory obligations, customer information security, and other critical areas.
• Risk Management: P2P Lending businesses should establish comprehensive risk frameworks and procedures to identify, assess, and manage credit, operational, and cybersecurity risks, ensuring all potential high-risk areas are adequately monitored and managed.
• Governance Arrangements: P2P lending platforms should have effective governance structures in place to oversee operations and ensure responsible management and decision-making.
• Senior Management Accountability: Senior managers in P2P Lending Companies should be assigned specific responsibilities to ensure accountability for conduct and competence.
• Operational Resilience: P2P lending platforms should ensure the resilience of critical business services, planning for continuity amidst disruptions.
• Technology Risk Management: Peer-to-peer lending platforms should manage technology risks, particularly those reliant on sophisticated IT systems, covering cybersecurity and system reliability requirements.
• Interest Rate Management: P2P lending networks should have controls in place to ensure that interest rates offered are competitive and comply with regulatory standards.
• Credit Risk Management: Peer-to-peer lending companies should implement robust credit risk management practices to assess and mitigate the risk of borrower default.
• Risk-Based Decision-Making: P2P lending firms should employ a risk-based approach to decision-making, ensuring that all actions and policies align with the platform's risk appetite.
• Technological Innovation: P2P lending platforms should ensure compliance with evolving regulations as they adopt new technologies like blockchain.
• Regulatory Change Management: P2P lending businesses should maintain strong regulatory change management controls to ensure continuous compliance in this rapidly evolving sector. This includes:
  • Monitoring Regulatory Developments: Regularly monitoring regulatory bodies' websites and industry publications for updates on P2P lending regulations.
  • Impact Assessment: Assessing the potential impact of new regulations on the platform's operations and compliance posture.
  • Implementation Strategies: Developing and implementing strategies to adapt to regulatory changes, potentially requiring changes to platform policies, procedures, and technology.
  • Training and Communication: Providing training to relevant personnel on updated regulations and communicating changes to borrowers, lenders, and other stakeholders.

 

Market Integrity and Transparency Controls

• Market Conduct Standards: P2P lending platforms should ensure market conduct is fair, transparent, and free from abuse, including manipulation or insider trading.
• Fair Lending Practices: Peer-to-peer lending platforms should avoid discriminatory practices in loan origination or investor onboarding.
• Conduct and Disclosure Standards: P2P lending platforms should maintain high standards of conduct and ensure that disclosures to their clients are clear, accurate, and effective.
• Service Provision Standards: Peer-to-peer lending businesses should provide services efficiently, honestly, and fairly.
• Product Governance: Adequate arrangements for product design, approval, and review should be in place to ensure P2P lending networks meet regulatory requirements and client needs.
• Client Asset Protection: Client assets must be protected and segregated from platform funds, with clear rules on their use and handling.
• Dispute Resolution: Proper mechanisms for dispute resolution and client compensation must be in place, especially for retail clients.
• Investor Suitability Assessment: Under certain circumstances, P2P Lending Platforms are expected to assess the risk tolerance and investment objectives of lenders to ensure they are facilitating the placing of suitable peer-to-peer loan products for their users.
• Loan Origination and Servicing Controls: Controls are necessary for efficient and compliant loan origination and servicing activities, including:
  • Creditworthiness assessment of borrowers.
  • Transparent and accurate loan terms and pricing for borrowers and lenders.
  • Secure and efficient loan application and disbursement processes.
  • Timely communication with borrowers and lenders regarding loan performance, repayments, and potential defaults.
  • Management of loan delinquencies and potential recovery processes.
• Investor Reporting and Communication: P2P lending platforms are expected to facilitate regular and transparent reporting to investors regarding their peer-to-peer loan portfolio performance, including interest earned, potential risks of defaults, and overall platform performance.
• Loan Diversification Strategies' Controls: Loan diversification is critical for mitigating risk concentration on P2P lending platforms. This means offering a variety of loan products across different industries, borrower types, and loan sizes. Controls for facilitating proper loan diversification could include:
  • Product Development: Developing a variety of loan categories with different risk profiles to cater to different borrower needs and investor risk tolerances.
  • Geographical Diversification: Facilitating peer-to-peer lending across various geographical regions, if regulations allow, to reduce dependence on a single market's economic performance.
  • Marketing and Investor Education: Encouraging lenders to diversify their P2P loan portfolios through educational resources and investment tools that promote risk diversification strategies.
  • Portfolio Monitoring and Risk Management: Continuously monitoring the diversification of the loan portfolio and implementing risk management strategies to address potential concentrations.

 

Resource Management Controls

• Resource Adequacy: Adequate financial, technological, and human resources should be maintained for effective P2P lending platform operations.
• Professional Competence: P2P lending platforms should ensure key personnel possess the necessary competence, knowledge, and skills.
• Advisor and Representative Competence: Advisers and representatives providing financial services on peer-to-peer lending platforms should receive adequate training and demonstrate competence.

 

P2P Lending Regulations and Reporting Controls

• Market Transaction Reporting: Peer-to-peer lending networks should report transactions to the relevant authority or repository to support market transparency and oversight.
• Comprehensive Transaction Reporting: Peer-to-peer lending firms should provide detailed reporting of loan origination, funding, repayments, and defaults for internal management, compliance, and investor information.
• Regulatory Reporting: P2P lending platforms should submit regular reports to regulatory authorities on platform operations, loan portfolio performance, AML/CTF compliance, and adherence to consumer protection standards.
• Record-Keeping: Peer-to-peer lending companies should maintain accurate records of all lending transactions, investor funds, borrower repayments, and communications for audit and regulatory review purposes.

 

Product and Service Management Controls

• Product Suitability: P2P loan products offered should be appropriate for both lenders and borrowers, considering their risk profiles and financial needs.
• Product Lifecycle Oversight: There should be Procedures should be in place for managing the lifecycle of lending products, from design to distribution, ensuring compliance with evolving regulations and market conditions.
• Execution Quality: P2P lending platforms should ensure the efficiency of matching borrowers with lenders, processing loans, and managing repayments.
• Data Protection and Privacy: Peer-to-peer lending businesses should adhere to robust data protection standards to safeguard client information, which are in line with national data protection laws and cybersecurity standards.

 

Transactional Controls

• Electronic Trading Risk Requirements: While P2P lending platforms may not require the same level of control as high-frequency trading firms, appropriate cybersecurity measures should be in place to protect platform systems and client data.
• Funds Separation: Peer-to-peer lending companies should ensure the separation of client funds from the platform's operational funds to protect investor and borrower assets and maintain trust.

 

Licensing Solutions for P2P Lending Platforms

• Financial Licensing Application Support: We provide comprehensive support for a wide range of licensing applications for P2P platforms, including:

• Australia - AFSL Licensing for P2P Lending Platforms: We assist peer-to-peer lending platforms with AFSL applications, ensuring compliance with ASIC's requirements under the Corporations Act 2001.
• New Zealand - FMA Licensing for P2P Lending Services: We guide P2P lending platforms through the licensing process with the FMA, ensuring compliance with the Financial Markets Conduct Act 2013.
• United Kingdom - FCA Authorisation for UK P2P Platforms: We support peer-to-peer lending platforms in obtaining FCA authorisation, adhering to the UK's regulatory standards for peer lending platforms under the Financial Services and Markets Act 2000.
• United States - SEC Registration and State Licensing: We provide consultancy for SEC registration under the Securities Act of 1933 and the Securities Exchange Act of 1934, and navigate state-specific lending licences for P2P lending platforms.
• European Union - ECSP Regulation Compliance: We advise on compliance with the ECSP Regulation (EU) 2020/1503 for peer-to-peer (P2P) lending platforms operating within the EU, facilitating cross-border services.
• Singapore - CMS Licence Application for P2P Lending: We assist with the CMS Licence application process for P2P lending platforms, ensuring adherence to MAS guidelines under the Securities and Futures Act (Cap. 289) and the P2P Lending Platforms Act (Cap. 110).
• Cayman Islands - CIMA Licensing: We advise on the necessary steps for peer-to-peer lending platforms to obtain licences under the Money Services Law or another relevant financial services framework regulated by the Cayman Islands Monetary Authority (CIMA).
• Bermuda - Digital Asset Business Licensing: We support P2P lending platforms in navigating Bermuda's Digital Asset Business Act 2018 for potential licensing with the BMA.
• Gibraltar - DLT Provider Licensing: We assist with the application process for a DLT Provider Licence in Gibraltar for peer-to-peer lending platforms utilising blockchain technology under the Financial Services (Distributed Ledger Technology Providers) Regulations 2017.
• Isle of Man - Financial Services Licensing: We guide P2P lending platforms through the licensing process with the IOMFSA, ensuring compliance with the Isle of Man's Financial Services Act 2008.
• Malta - Financial Institution Authorisation: We help peer-to-peer lending platforms understand and comply with Malta's Financial Institutions Act 1994 for potential licensing by the MFSA.
• Other Jurisdictions: We offer tailored support for licensing and registration in other jurisdictions, meeting specific regulatory conditions.

• International Governance Alignment: We provide strategic advice on aligning governance models for P2P lending platforms that operate across multiple jurisdictions to meet diverse regulatory expectations while maintaining operational efficiency and regulatory compliance.

 

 

Policies and Procedures for P2P Platforms’ Compliance Management

• Compliance Policies and Core Documents: We develop, enhance, and implement a set of core policies, manuals, frameworks, and procedures for effective compliance management of P2P lending platforms.
• Effective Procedures for P2P Lending Platforms' Compliance Management: We draft and enhance a detailed set of procedures and protocols to meet the distinct needs of your business, focusing on efficient compliance, your business goals, and applicable P2P lending compliance requirements.
• Examples: These policies and procedures include, but are not limited to:

 

Operational Compliance

• Compliance Management Frameworks
• Compliance Monitoring Programs
• Compliance Calendars and Checklists
• Complaints Handling and Dispute Resolution Policies
• Compliance Training Manuals and Programs, as part of our regulatory compliance training solutions
• Obligation Registers
• Margin Account Negative Balance Write-Off Procedures
• Incident Reporting Policies and Procedures
• Outsourcing Policies and Vendor Risk Management policies as part of our outsourced provider's compliance management solutions
• New Client Account Opening Policies and Procedures,
• Borrower Verification Procedures as part of our customer onboarding solutions. These include processes for verifying the identity and creditworthiness of borrowers.
• Investor Verification Procedures as part of our customer onboarding solutions. These include processes detailed processes for verifying the identity and suitability of investors.
• Interest Rate Setting Policies: Guidelines for setting interest rates for loans.
• Loan Default Management Procedures: Processes for managing and mitigating loan defaults.

 

Governance and Oversight

• Board Charters, Risk, Audit and Compliance Committee Charters, as part of our corporate governance solutions
• Codes of Conduct
• Delegations Registers
• HR Manuals and Policies
• ESG Compliance Policies
• Conflict of Interest Policies

 

Risk Management

• Risk Management Frameworks as part of our risk management solutions
• Risk Assessment Guidelines and Methodologies
• Internal Control Testing Methodologies
• Risk Registers and specialised risk registers like Health and Safety Risk Registers
• Cybersecurity Risk Management Policies
• Credit Risk Management Policies

 

Audit and Assurance

• Compliance Assurance Programs as part of our compliance assurance solutions
• Internal Audit Policies and Programs as part of our internal control testing solutions
• Regulatory Reporting Procedures

 

Client and Market Conduct

• Marketing and Advertising Policies
• Fair Lending Policies

 

AML/CFT and Financial Crime Compliance

• AML/CFT Compliance Programs
• AML/CFT Risk Assessment
• Whistleblowing Policies
• Sanctions Compliance policies and procedures
• Fraud Prevention Protocols and Controls as part of our fraud prevention solutions
• ABC Policies

 

Privacy and Data Management

• Client Data Protection Policies
• Record-keeping Policies and Procedures and/or Data Governance Policies as part of our record-keeping compliance solution
• External Privacy Policies
• Internal Data Protection Compliance Programs

 

Compliance Training and Capacity Building

We focus on practical compliance and the application of training to real-world compliance scenarios and challenges that P2P lending platforms generally face. Our services include:

• Customised Compliance Training Solutions:  Specialised compliance training sessions for various teams, including management, compliance, operations, sales, and customer relations, focusing on P2P lending regulations, applying P2P lending platforms' compliance management practices to your circumstances, risk awareness, and more.
• Up-to-date Regulatory Compliance Updates:  Keeping compliance officers, managers, CROs, COOs, and other Risk and Compliance team members informed of changes in P2P lending licensing requirements and regulations, AML/CFT updates, and changes in regulatory guidance.
• Data Analysis for Effective Compliance Monitoring: Covering training on compliance-related, data-based analysis and its results, including risk rating, internal control adjustments, resource and focus reallocation, and more.
• Workshops on Emerging AML Trends and Red Flags: Updating on new AML trends, red flags, typologies, and AML/CFT requirements for P2P lending platforms. For more information, please visit our AML/CFT Training Solutions page.
• Practical Workshops: Interactive workshops focused on effective and goal-oriented P2P lending platforms' compliance, capacity planning, and resource allocation, covering:

• P2P lending regulations
• Internal and external compliance reporting
• Effective governance over risk and compliance functions
• Organisation-wide risk assessment, risk rating methodologies and the development, management, and testing of corresponding internal controls, including controls testing methodologies and practical techniques.
• P2P lending platforms' compliance reality, including outsourced provider monitoring, UAV management, incident management, product suitability assessments, advertising and marketing compliance, improvements in the client onboarding journey, transaction monitoring processes, and more.

• Further information: You can visit our Compliance Training Solutions page for more information on the compliance training services we offer to licensed financial institutions and financial service providers.

 

P2P Lending Platforms and AML/CTF Compliance

We offer a complete set of solutions covering P2P lending platforms' anti-money laundering (AML), financial crime and counter-terrorism financing (CTF) compliance. Our solutions include:

• Customer due diligence, screening, and customer onboarding solutions
• Development of transaction monitoring frameworks tailored to P2P lending platforms' specific ML/TF red flags and your business specifications
• AML advisory covering P2P [p' compliance issues and challenges
• Drafting, testing, and updating AML policies and procedures
• AML training and capacity building
• Managed AML compliance solutions for P2P lending platforms
• Internal and statutory AML audit solutions for P2P lending platforms
• Financial crime prevention framework development focusing on common fraud risks faced by P2P lending platforms
• For more information, please visit our specialised P2P Lending Platforms AML Compliance Solutions page

 

P2P Lending Platforms’ Compliance Technology Integration

Our services cover compliance aspects concerning the integration of technology for risk and compliance e-management, transactional reporting (where applicable), usage of AI, technology outsourcing, and compliance aspects of third-party risk management for P2P lending platforms, including:

• Needs Assessment
• Compliance Technology Selection: Based on your budget, products, available operational and technical resources, and the applicable P2P lending platforms' compliance obligations
• Implementation assistance across the organisation
• Streamlining operational workflows: For routine compliance tasks like data collection, reporting, and risk assessments
• AML/CFT Compliance Technology: Covering customer digital onboarding, E-KYC, PEP and sanctions screening, transaction monitoring, etc.
• Integration of P2P lending platforms' compliance obligations into an effective CRM system
• Record-Keeping Obligations: Helping you choose and integrate the necessary tools to comply with the record-keeping requirements under various laws and P2P lending regulations

 

Data Management and Information Privacy Solutions

• Data Governance and Compliance:  Assisting P2P lending platforms in establishing robust data governance procedures, programs, and protocols that align data collection, storage, and usage practices with relevant data privacy regulations, such as GDPR, CCPA, and other applicable laws. These measures safeguard sensitive client and business information from unauthorised access, breaches, and misuse.
• Privacy Policy Compliance Monitoring: Helping you implement privacy policies that reflect the latest data protection legislation, supported by continuous compliance monitoring tools to maintain the highest data privacy standards.
• Record Maintenance Protocols:  We assist in developing and implementing effective procedures for maintaining necessary records, covering P2P lending platforms' compliance with applicable regulatory reporting standards and reporting requirements.
• Record Availability and Inspection Readiness:  P2P lending regulations often require records to be readily available for inspection by regulators, AML/CFT supervisors, tax agencies, and other relevant authorities. This extends to information kept by your outsourced service providers. We help you organise your record-keeping processes to meet these needs.

 

ISO Standards and P2P Lending Platforms’ Compliance

• Cross-Reference Mapping: Integrating ISO standards such as ISO 27001, ISO 9001, and ISO 22301 into an existing compliance framework and linking specific sections of ISO standards to corresponding procedures in your internal policies and procedures.
• Pre-Audit Preparation: Coordinating ISO controls testing across different parts of the business.
• Leading evidence collection across the different departments to cover relevant compliance areas such as planning, governance, organisational controls, operational controls, technological controls, and physical controls through structured workflows.
• Digital Compliance Repository: Helping you utilise a centralised digital repository for storing all compliance-related documents and evidence, making it easily accessible for audit purposes and compliance verification.
• ISO Audit Liaison:  Acting as a liaison between your team and the auditors, coordinating information requests, and ensuring all the necessary documentation is readily available.
• Post-Audit Remediation Management: We can lead the implementation of your remediation plan and support corrective actions to address all audit findings effectively.

 

Regulatory Change Management Solutions

Empower Your Business with Proactive Regulatory Change Management:

• Stay Ahead of the Curve:  We actively monitor regulatory updates from global financial authorities like MAS, ASIC, FMA, FCA, SEC, and other regulators for P2P lending platforms' compliance changes and updates to evaluate the implications of regulatory changes.
• Impact Assessment and Mitigation Strategies: We analyse the potential impact of regulatory changes on P2P lending platforms' compliance management frameworks and operational processes. We then collaborate with you to develop effective mitigation strategies that support continued compliance and minimise disruption.
• Seamless Implementation and Change Management:  We guide P2P lending platforms through necessary process adjustments, update internal policies and procedures, facilitate a smooth transition through regulatory changes, and assist with effective communication with impacted stakeholders.