The brand new European Crowdfunding Service Supplier Regulation (ECSPR) may make the UK peer-to-peer lending market extra aggressive, because it permits EU lenders to boost funds and finance loans in non-EU international locations.
Which means that European lenders may vie for among the UK’s P2P market share, as soon as the rules are extra broadly applied.
The ECSPR got here into impact in November 2021 and permits any European P2P and crowdfunding corporations to function throughout the EU with out restriction. To this point, simply six platforms have been licensed below the brand new regulatory regime, together with crowdfunding web site Crowdcube and Netherlands-based P2P lender Lendahand Ethex.
Learn extra: P2P’s world evolution
Nonetheless, Oliver Gajda, government director of EuroCrowd, believes that many extra platforms will grow to be licensed within the coming months.
There aren’t any restrictions on elevating or delivering funds to non-EU international locations such because the UK.
Learn extra: EasyMoney mulls Europe entry
Moreover, particular function automobiles can be utilized to finance illiquid belongings with securities investments, equivalent to bonds. This might permit EU crowdfunding and mini-bond platforms to market their merchandise within the UK and to again UK funding initiatives.
“This a needed facet impact of ECSPR and can occur eventually,” Gajda says.
Learn extra: Transition interval prolonged on ESMA crowdfunding rules
