Kuflink introduces new P2P appropriateness test

Peer-to-peer platform, Kuflink, says all new and returning investors will have to score 100% on its new appropriateness test in order to invest on the platform.

Related topics:  Commercial,  Commercial finance
Rozi Jones
5th December 2019
Narinder Khattoare Kuflink
"Along with the introduction of the appropriateness test, we are planning to place more tools on our website to guide and educate would be investors. "

Kuflink says new FCA rules, which come into force on the 9th of December, are a necessary check to ensure that investors understand the implications of their investment.

The FCA will place a limit on investments in P2P agreements for retail customers new to the sector of 10% of investable assets to ensure they "do not over-expose themselves to risk". The investment restriction will not apply to new retail customers who have received regulated financial advice.

The rules were prompted by the closure of peer-to-peer firm Lendy, which entered administration following action taken by the FCA. The firm had £160m in outstanding loans with more than £90m in default.

The FCA says its new rules will "allow firms and fundraisers to operate in a long-term, sustainable manner".

Narinder Khattoare, chief executive of Kuflink, said: “Kuflink already has an excellent record as a platform because we have always taken care to spell out the facts surrounding this type of investment. As a result, our business and that of our investors have flourished. The new appropriateness test places a formal procedure in place which magnifies our own efforts to ensure that no one investing with Kuflink is unaware of both the potential for gain as well as the pitfalls.

“Along with the introduction of the appropriateness test, we are planning to place more tools on our website to guide and educate would be investors. Investment of any type should never be undertaken lightly. At Kuflink, we will continue striving to protect investors while maximising the opportunity to maximise their investment.”

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