In November 2015, the FCA published a discussion paper (DP15/6) setting out their initial thinking on changes they might make to the Handbook to take account of legislative developments that will impact the regulated loan-based crowdfunding sector.
In February 2016 the FCA issued changes to the FCA handbook to reflect the introduction of the Innovative Finance ISA and the regulated activity of advising on peer-to-peer agreements including feedback to DP15/6.
As part of this paper, the FCA rules required firms to have arrangements in place to ensure that existing loan contracts will continue to be managed and administered in accordance with the contract terms if at any time a firm ceases to carry on the activity (The Living Will). Even with these arrangements in place, however, it is impossible to remove all risk, and there is still the possibility of detriment to consumers if these back-up arrangements fail to work as expected.
Thistle Initiatives can offer this service to the regulated loan-based crowdfunding sector via our FCA regulated umbrella Resolution Compliance Limited.
In addition, we can also assist with the drafting of your living will as required by the FCA and we will support you during the application process.
Feel free to call us for a no obligation assessment of the best approach for your business