The federal government has formally responded to a query from the opposition in regards to the stage of fraud within the peer-to-peer lending sector.
In response to a question from Labour’s shadow minister for digital, culture, media and sport, Alex Sobel, John Glen, the financial secretary to the Treasury, stated that “the federal government takes issues of fraud extraordinarily critically.”
In a written assertion, Glen stated that the federal government will “proceed to work carefully with business to shut down the vulnerabilities that fraudsters exploit and guarantee members of the general public have the knowledge they should spot a rip-off and stand as much as fraudsters.”
“We arrange the Joint Fraud Taskforce to assist construct a collaborative legislation enforcement, authorities and business response to tackling fraud,” Glen added.
“The Taskforce have already delivered on initiatives resembling Take 5 (the fraud consciousness marketing campaign). The Monetary Conduct Authority’s (FCA) ScamSmart web site additionally goals to assist customers defend themselves in opposition to funding scams, by permitting customers to go looking a warning record to examine an funding alternative and report scams or unauthorised corporations.
“The FCA has a broad vary of powers to supervise the P2P and elements of the crowdfunding sectors. Furthermore, P2P lending and investment-based crowdfunding are regulated actions beneath Monetary Providers Markets Act
“HM Treasury works carefully with the FCA on an ongoing foundation to know what dangers it has recognized within the sectors it regulates, together with the potential for a rise in fraud.”
On 11 January, Sobel requested whether or not the federal government plans to make an evaluation of the potential stage of fraud in P2P lending and crowdfunding.
Whereas he didn’t identify any P2P lenders specifically, there have been some claims of fraud in the course of the administrations of collapsed P2P lenders resembling Lendy and FundingSecure.
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