Treasury clarifies CIS exemption for P2P operators

Treasury has amended the FSMA (CIS) Order to clarify that the exemption that means operators of peer-to-peer lending platforms are not operating CIS when they carry out activities closely associated with platform operation will also extend to firms who take over the ongoing provision of platform services when the original operator goes into run off.

The Government commented that if it did not make this change, it would significantly reduce the number of firms who would be willing to provide this service.