Issues Around An Ill-Fitting Regulatory Approach
Last year, a national Accountability workplace (GAO) report learned two distinct approaches toward managing lending that is p2P. The status quo included a bifurcated regime that is regulatory with all the SEC and state securities regulators protecting loan providers through disclosure demands, and prudential regulators including the Federal Deposit Insurance Corporation and CFPB emphasizing borrower security.[20] The choice consolidated regulatory regime “would designate main federal obligation for debtor and loan provider security to an individual regulator, such as for instance [the] CFPB[,] . . . [and] would need person-to-person that is exempting platforms from federal securities regulations.”[21] The report noted that “[t]he key difference amongst the two main options for regulating person-to-person financing is the way they would protect loan providers.”[22]
Right after the GAO report ended up being posted, Andrew Verstein, that is now a Wake Forest Law School professor, published the initial comprehensive research analyzing the shortcomings of SEC legislation of P2P financing.[23] Broadly, Verstein improvements three criticisms of SEC legislation. 继续阅读Broadly, Verstein improvements three criticisms of SEC legislation.