The Peer-to-Peer Finance Association is the UK industry body for P2P finance providers and platforms. Here's a short guide to their purpose and history.

1. The Peer-to-Peer Finance
Association:
A 3 minute guide

2. The P2PFA is the
UK industry body
for peer-to-peer
finance.

3. Hang on, what’s
Peer-to-Peer
finance?

4. “
Peer-to-peer finance
platforms facilitate
funding via direct
contracts between
lenders and borrowers
”

5. This revolutionary concept
uses the power of the internet
to cut out unnecessary
intermediaries and banks

6. Businesses or consumers
want to borrow money at a
reasonable interest rate
Businesses
or
consumers

7. Investors and savers want to
get a good return on their
money
Investors

8. The platform connects the two
￡!
Investors
P2P
platform
￡!
Businesses
or
consumers

9. and then enables repayment
￡!
Investors
P2P
platform
￡!
Businesses
or
consumers

10. Peer-to-Peer platforms have
experienced extraordinary
growth since the concept
emerged in 2005

11. Millions
Cumulative gross lending data
for P2PFA members
£1,000
£900
£800
£700
£600
£500
£400
£300
£200
£100
£0
2010
2011
2012
2013

12. In 2013 these companies grew by
Read more stats on the P2PFA website >>>

13. The Peer-to-Peer Finance
Association was set up to
ensure high standards in
this fast-growing industry

14. It was founded in August 2011

15. There are now 8 members

16. So what’s
involved in being
a member?

17. All members of the
P2PFA must adhere to
the rules and operating
principles drawn up by
the association

18. Rule #1
All members have to
maintain a minimum amount
of funds to maintain stability

19. Rule #2
Members have to keep their
clients’ funds separate to
their own

20. Rule #3
Members have to
lend responsibly and
manage credit risk

21. Rule #4
Transparency

22. Tran
s
pare
n
Members have to
communicate to their clients:
•
•
•
•
Likely default rates
Terms of the product
Risks and likely returns
Fees and charges
cy

23. “
Tran
s
pare
n
Each member must
ensure that clear, fair
and not misleading
information is published
on their website
cy

24. Rule #5
Members have to make sure
their IT systems are secure
and reliable

25. Rule #6
Members must have a clear
complaints handling policy

26. “
Rule #7
Each member must make
arrangements to ensure the
orderly administration of its
customers’ contracts in the
event that their platform
ceases to operate

27. Christine Farnish is
the independent
Chair of the P2PFA,
having previously
worked as
Consumer Director
at the FSA

28. 2014 is a big year for the
P2PFA, with the FCA bringing in
regulation for P2P finance and
crowdfunding from April 1st
Read more on the P2PFA
website >>>

29. As the association’s newest
member, MarketInvoice is proud
to adhere to the P2PFA’s rules
and shares its commitment to
transparency and innovation
Read more on the MarketInvoice website