File(s) under permanent embargo
Reason: This item is currently closed access.
Growing pains: The changing regulation of alternative lending platforms
preprint
posted on 2019-02-19, 09:58 authored by Ding Chen, Anil KavuriAnil Kavuri, Alistair MilneAlistair MilneWe review the legal and regulatory framework covering alternative (‘peer-to-peer’ or ‘marketplace’) lending platforms in the US, China, the UK and more briefly other countries. The main regulatory concerns are (i) enforcing consumer credit rules for unsecured personal lending; and (ii) protection of uninformed retail investors from mis-selling and platform failure. Alternative lending was first established with little regulatory oversight, but there has been substantial reregulation – first in the US via the 2008 SEC decision that platform investments are securities; subsequently in the UK, China and other countries. We anticipate further reregulation to protect retail investors, limiting the funding of loans from the ‘crowd’. Promoting credit supply through alternative lending platforms requires also institutional investor participation and embracing the use of technology in platform regulation (‘RegTech’).
History
School
- Business and Economics
Department
- Business
Citation
CHEN, D., KAVURI, A.S. and MILNE, A., 2019. Growing pains: The changing regulation of alternative lending platforms. Available at https://ssrn.com/abstract=3315738Publisher
SSRNVersion
- SMUR (Submitted Manuscript Under Review)
Publisher statement
This work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/Publication date
2019Notes
This is a working paper and it is in closed access.Publisher version
Language
- en