The UK government has told P2P lenders that wholesale lending does not count under the current regulations and the practice is too risky for retail investors; wholesale lending is when you lend money to a business who then lends that money out; the FCA said, “this would mimic banking – but without the same protection for individuals or regulations for the firms involved”; P2P lender RateSetter started to wind down their wholesale loan book after getting more clarity from the FCA in December; the FCA still hasn’t provided full clarity on the subject, but they are at least beginning to give more insight so lenders know where the boundaries are. Source
