Marketplace Lending – Page 5 – FinTech and Blockchain Law Watch

Australian Government gets more FinTech friendly

Mar 23 2016

The Australian Government has released its responses to the industry’s priorities for fintech development which it has called “Backing Australian FinTech”. As well as affirming existing commitments, such as introducing a crowd sourced equity funding (CSEF) framework and an incubator support programme, the paper includes a number of initiatives that the Government proposes to undertake. New developments include:

introduction of an entrepreneur visa in November 2016 for foreign entrepreneurs with innovative ideas and financial backing from a third party;
possibly increasing the asset and turnover eligibility threshold for CSEF to A$25 million and reducing cooling off periods for investors to 48 hours;
consultation on a potential framework for crowd sourced debt funding;
increasing the maximum fund size of Early Stage Venture Capital Limited Partnerships (ESVCLPs) to A$200 million and providing a 10% tax offset on capital invested;
introduction of a mechanism to allow Innovation Australia to issue binding advice in relation to the definition of ineligible activities for ESVCLPs;
Productivity Commission inquiry into options for improving access to comprehensive credit reporting (CCR) data;
a regulatory guide for robo-advice providers;
possibly allowing licensed insurance brokers to sell insurance policies from unauthorised foreign insurers where they offer consumers a better price and appropriate consumer protection;
possibly applying anti-money laundering laws to digital currencies;
a commitment to address the ‘double taxation’ of using digital currency to purchase goods already subject to the Goods and Services Tax (GST);
establishment of a new Cyber Security Growth Centre; and
a ‘regulatory sandbox’ in Australia to allow FinTech start-ups to test their products and business models.

Backing Australian FinTech indicates that 2016 will be a busy year for fintech regulation in Australia.

Read Backing Australian FinTech here.

Islamic compliant marketplace financing

Mar 20 2016

By Jonathan Lawrence

It is estimated that 29.7% of the global population will likely be Muslim by 2050, against 23.2% in 2010. The proportion of Muslims in Europe is currently around 6% of the population and is projected to be 8% by 2030. This creates a large business and consumer base to consider for FinTech ventures. How can you make your business platform compliant with the principles of Islam to appeal to this market?

One way has been to create a financing platform using the Murabaha method. This is an Islamic finance technique used to provide financing on terms compliant with Islamic principles. For example, there is no direct interest rate return made by the financier as charging interest is not considered to be compliant.

Islamic Finance and FinTech

Mar 04 2016

By Jonathan Lawrence

FinTech and Islamic finance techniques are both disrupting traditional structures in the conventional financial industry. Therefore it is appropriate that companies, investors and consumers aiming to be Islamic-compliant are able to use technology to increase access to financing structures that accord with their beliefs or those of their markets in the Muslim and non-Muslin worlds.

Mobile based Islamic-compliant banking is on the rise, especially among those who were previously unbanked for logistical or religious reasons. Among the most prominent disruptive ventures in Islamic finance is Dubai-based Beehive, a platform that aims to provide low-cost alternative financing to small and medium-sized enterprises (SMEs) and is the first peer-to-peer lending platform in the world to have received independent Shariah certification for its investments. Beehive has so far provided more than $4bn in financing for SMEs in the United Arab Emirates.

FinTech in the UK: Regulating Disruption

Mar 04 2016

By Sonia Gioseffi, Shehram Khattak, Jonathan Lawrence and Ronnie Yearwood

Without doubt, FinTech companies are in some ways deconstructing the services offered by larger banks in the UK and elsewhere. However, risks are not resolved because of the technology, as information and financial products are marketed and sold via web-based platforms, social media or other technological applications. Consumers still need to be clearly informed about the firms and the financial products being offered. Firms must still ensure that they adhere to the principle that their communications are “fair, clear and not misleading”. It is, therefore, better for a FinTech firm to apply and take advice on best practice in this regard, which saves money and time in the interim, than to wait either for enforcement from the regulator or for market failure to drive responses. Find our longer article here.

London Calling: London FinTech Podcast

Mar 04 2016

By Jonathan Lawrence

If you’re interested in the industry view from London, how about listening and subscribing to London FinTech Podcast? It provides access to many of the leaders in the London FinTech space and provides podcasts discussing topics including start up and emerging growth, marketplace lending, crowdfunding, alternative currencies, payment systems, equity funding, invoice finance, investment and the existing financial services response to FinTech innovations.

Certain Compliance Risks in Marketplace/Peer-to-Peer/Online Lending

Feb 25 2016

By Tony Nolan, Joseph Valenti, and Christopher Bell

The online marketplace lending industry has experienced substantial growth in the past few years. Its share of the global lending market is predicted to continue its increase. In the United States, regulators are starting to take notice.

The first major sign of interest came from the U.S. Treasury. On July 16, 2015, it issued a Request For Information to better understand the impact of online marketplace lending on small businesses, consumers, and the broader economy.

K&L Gates to Sponsor ABS Vegas 2016 Conference

Feb 25 2016

By Tony Nolan

Once again K&L Gates will be sponsoring the IMN ABS Vegas 2016 conference, which will take place at the Aria Resort & Casino in Las Vegas Nevada from February 28 through March 2, 2016.

This is the first year that online lending will be an important focus of attention at ABS Vegas, in testament to the growth of an important new asset class. This will permit K&L Gates to highlight our practice in the converging areas of Fintech, Marketplace Lending, Securitization and Structured Finance and Consumer Financial Services Regulation

Visit our exhibition booth and get cool stuff!

K&L Gates Partners to Speak on Marketplace Lending at ABA Spring Conference in Montreal

Feb 25 2016

K&L Gates partner Anthony Nolan (NY) will participate in a panel discussion on Marketplace Lending at the American Bar Association’s 2016 Spring Meeting in Montreal, Canada on Saturday April 9.

K&L Gates London Office to Host Breakfast Roundtable Forum on US Marketplace Loan Investments, March 10, 2016

Feb 24 2016

By Tony Nolan

On March 10, 2016 at 8:30am the London office of K&L Gates will host a Breakfast Roundtable on the US Regulatory Landscape for Marketplace Lending. The Roundtable will cover a range of topics that are relevant to entering into the US market, focusing particularly on ways to facilitate a broad distribution of investments.

New York partner Anthony Nolan and London partner Jacob Ghanty will lead a discussion of how US regulatory and compliance issues may affect UK lenders and investors that are considering entering the US online / P2P / marketplace lending market.

Investor Registration Website Launched Following China’s Ezubao Scam

Feb 23 2016

By Cameron Abbott and Meg Aitken

Chinese regulators launched a website on Saturday to aid authorities in their mission to investigate the gigantic Ezubao “Ponzi scheme” that allegedly stole money from more than 900,000 investors.

Ezubao, China’s largest peer-to-peer lender, was caught red handed fabricating the majority of its listed investment projects and using investor money to fund the extravagant lifestyle of the company’s executives earlier this month.

Category:Marketplace Lending