Regulatory and Policy Reforms in P2P Lending in Australia

Abstract

AbstractChapter 5 will provide an overview of the various regulatory regimes that potentially apply to P2P operators using the various operating models discussed in Chap. 1 of this book. Particular attention will be paid to the regulatory regimes applying to P2P operators using the managed investment funds model, with a brief overview of the application of the regulatory regimes applying to the P2P operators using the securities model, derivatives model and the financial markets model. An international comparison will be drawn with the regulatory framework adopted in the United States and the United Kingdom. It will be argued that, due to the lack of a specific regulatory response to marketplace lending, P2P operators are required to navigate a labyrinth of regulation which is unduly complex and costly and may impede the continued growth and development of the industry. The United Kingdom, United States and Equity Crowdfunding Act therefore provide useful examples for regulating marketplace lending.