“We totally understand why the regulator decided to implement this temporary restriction, whilst they decide on the appropriate longer term rules that will be put in place,” Rajah told Peer2Peer Finance News.
“The industry will be working closely with the regulator during this consultation period and providing their views. We are very fortunate that these temporary restrictions don’t have a real impact on our business.
“However one observation that we have is that they do temporarily create a discrepancy between the risk perception of P2P and bond-based platforms offering potentially similar types of property loans which I imagine the longer term rules may address.
“The key driver of the underlying risk associated with investing in a property loan is the credit quality of that loan rather than the investment structure (P2P loan vs bond). However, it is hard though for investors to compare loan quality from platform to platform.”
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