RateSetter begins roll-out of investor self-certification
RATESETTER has begun asking its customers to confirm their investor status ahead of the Financial Conduct Authority’s (FCA) new marketing and disclosure rules that come into effect on 9 December.
The peer-to-peer lender has sent an email to investors, stating that next time they sign in to their RateSetter account, they may be asked to confirm their investment profile with a choice of one of four investor types.
The investment options are: self-certified sophisticated investor (i.e. an experienced P2P investor); certified sophisticated investor (i.e. on the basis of a certificate signed by an FCA-authorised person or company); restricted investor (i.e. never invested in P2P before, or have invested just once); and high net worth investor (i.e. income of £100,000+ or net assets of £250,000+).
Peer2Peer Finance News understands that RateSetter is rolling out the self-certification process progressively to its customer base over the coming weeks.
The new FCA rules require platforms to introduce an appropriateness test and marketing restrictions for investors.
Under the regulations, platforms will be restricted to marketing to those who are certified or self-certify as sophisticated investors, those who are certified as high-net-worth investors, people receiving regulated investment advice, or those who certify that they will not invest more than 10 per cent of their net investible portfolio in P2P agreements.
Read more: Most P2P investors back new FCA rules, finds Growth Street
Platforms must carry out an appropriateness assessment which considers a client’s knowledge and experience of the P2P investment before the platform can accept a subsequent instruction to invest. It is up to platforms to decide how this test will look, but the regulator has provided guidance on the information that can be provided and what needs to be assessed.
Read more: Industry grapples with compliance as FCA rule changes loom