Question to the HM Treasury:

To ask Her Majesty’s Government whether the Financial Conduct Authority and the Bank of England are looking at modelling what level of institutional investment in peer-to-peer (P2P) collaterised loan obligations, or at what level funds established to buy P2P collaterised loans, would present a systemic risk to the financial system; and if not, whether they have done so or plan to.

Her Majesty’s Government have not had any discussions with the Bank of England, the Financial Conduct Authority (FCA) or credit rating agencies about the securitisation of peer-to-peer loans.

However, since April 2014, the peer-to-peer lending sector has been supervised and regulated by the FCA. The FCA monitors risks in any regulated sector on an ongoing basis.