PEER TO PEER CONSUMER CREDIT LICENSE. P2P LENDING PLATFORM OPERATOR LICENSING

Peer-to-Peer (P2P) platforms help lenders finding consumers need financing. P2P license issued by EU member-state regulator. 

Peer to Peer lending platforms allow lenders to find their consumers avoiding traditional banking institutions. Consumers around Europe consider P2P lending as the modern alternative to the traditional bank financing, especially in the field of smaller consumer credit.

Through the P2P lending platform natural persons provide or promise to grant consumer credit to consumer credit recipients (private individuals). Lenders in P2P platforms may expect higher interest compared to bank deposits or other traditional financial instruments. For similar business financing Crowdfunding Platform Operator license needed.

Fast and easy licensing, business oriented regulation

Latest amendments to the Lithuanian Consumer Credit regulation allows fast and easy licensing of P2P lending platforms ready to provide services for the lenders looking for investments and retail clients looking for financing. It takes a bit more than 1 month (30 working days) to be included in to the list of Peer to Peer platform operators. Bank of Lithuania (Regulator) currently considered as one of the most business oriented and progressive regulators in European Union (EU/EEA).

Passporting of Peer to Peer (P2P) and Consumer Credit licenses in the EU

Peer to Peer platform operator’s license issued by the Bank of Lithuania – EU member state financial regulator. Pan-European passporting of Peer to Peer and Consumer Credit services within the EU/EEA area can be achieved combining license with Electronic Money Institution, Payment Institution or other passportable license.

List of the licensing documentation submitted to the Regulator for P2P licensing

1. A written request.

2. Information from the public register on the applicants company data.

3. Information on managers and shareholders.

4. Information on compliance to the authorized capital.

5. Business continuity plan (Business plan).

6. Consumer credit recipient’s creditworthiness assessment rules.

7. Information regarding the records and information systems used to determine the credit recipients’ creditworthiness.

8. The list of intermediaries who act on behalf of the company, if the company plans to use the services of consumer credit intermediaries.

Business Continuity Plan and Rules for Assessing the Creditworthiness of Borrowers are the most complex documentation to be prepared during the licensing procedure. The plan should provide measures and procedures ensuring that Consumer Credit Providers activities carried out continuously, without interruption, ensuring a smooth administration of the Consumer Credit contracts and continuing contractual obligations fulfilment in cases of unforeseen circumstances. Being the most experienced financial licensing advisor ECOVIS ProventusLaw assists in preparation of the Business Continuity Plan, other licensing documentation, accounting, reporting, audit and setting up all Peer to Peer platform operators business.

Kęstutis Kvainauskas

Lawyer, attorney at law, partner of the law firm.

Contact person