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The
bottleneck in processing applications means choice of platforms
may be limited for lenders until the FCA can review all the
applicants.
The FCA said it had fully authorized eight firms to operate P2P
platforms which enable people to lend small amounts of money to
other individuals or firms, such as tiny start-ups developing
new Apps, offering an alternative to banks.
A further 86 firms are waiting for approval, with 44 of them
given interim permission.
The rush for P2P platforms comes just before the government
launches on April 6 the Innovative Finance ISA, a tax free
savings product designed to encourage more investment in
start-up technology firms.
"Only P2P loans on platforms operated by firms with full
authorization will be eligible investments for the Innovative
Finance ISA," the FCA said in a statement.
The watchdog said it was keen to promote effective competition
in P2P lending but it was important for firms to meet rigorous
standards and for consumers to be protected.
The FCA said it can take up to 12 months to reach a final
decision on whether to authorize a new platform.
"We are working closely with individual firms to ensure they
meet the rigorous statutory standards and are authorized as
quickly as possible," the watchdog said.
(Reporting by Huw Jones; Editing by Clelia Oziel)
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