New EU rules could see lenders expand to UK
Summary
The new European Crowdfunding Service Provider Regulation (ECSPR) could make the UK peer-to-peer lending market more competitive, as it allows EU lenders to raise funds and finance loans in non-EU countries. Once the regulations are more widely implemented European lenders could vie for some of the UK’s P2P market share.
The ECSPR came into effect in November 2021 and allows European P2P and crowdfunding firms to operate across the EU without restriction. Six platforms have been licensed under the new regime so far. These include crowdfunding site Crowdcube and Netherlands-based P2P lender Lendahand Ethex - though more are expected to follow.
There are no restrictions on raising or delivering funds to non-EU countries like the UK. Special purpose vehicles can also be used to finance illiquid assets with securities investments, such as bonds. This would allow EU crowdfunding and mini-bond platforms to market their products in the UK and to back UK funding projects.
Links: https://p2pfinancenews.co.uk/2022/12/16/new-eu-rules-could-see-lenders-expand-to-uk/