Perspectives from Global Regulators

Perspectives from Global Regulators
Daniel Morgan, Head of Policy and Regulation, Innovate Finance; Dr. Jean Pierre Bussalb, Senior Adivosr, BaFin; Andrea Betramello, Policy Officer, European Commission
Moderator: Christine Farnish, Chair, P2PFA

The main focus of discussion was the UK P2P market versus Germany’s P2P market. The panelists noted that the UK P2P space is the most developed in Europe, with a market share of 70%; as a result, the UK’s regulatory scheme for P2P platforms is also the most developed in Europe.

Germany, on the contrary, has an undeveloped P2P market, the panelists observed, and P2P platforms there are governed by the same regulations as banks. The European Commission is aware of regulatory differences across EU countries and is working to address this problem by supporting cross-border activity. The creation of an EU-wide authorization framework would encourage cross-border transactions, fostering healthy competition among marketplace lenders, the panelists observed. In undertaking this effort, the European Commission could take the regulatory landscape of the UK as an example given how developed it is.