WASHINGTON, D.C. – (March 23, 2022) – The North American Securities Administrators Association (NASAA) is seeking public comment on a proposed Statement of Policy Regarding Peer-to-Peer Lending. NASAA’s proposed statement of policy is designed to provide a framework through which lending platforms register securities they issue to investors.
“The intent of this statement of policy is to set specific registration and qualification standards for securities offerings involving peer-to-peer lending,” said Melanie Senter Lubin, NASAA President and Maryland Securities Commissioner. “I wish to thank the members of NASAA’s Corporation Finance Section and Corporation Finance Policy Project Group for their work in developing this important statement of policy.”
In peer-to-peer lending, online platforms act as intermediaries to match individuals and small businesses seeking to obtain loans with investors who fund the loans. Peer-to-peer lending can be a means by which borrowers obtain needed funds, but investors may face significant risks of loss and must heavily rely on the lending platform to help mitigate those risks.
“NASAA developed this statement of policy to set some ground rules for peer-to-peer lending relationships and to help investors in such relationships become better informed. If adopted, the policy would ensure that lending platforms properly vet borrowers, facilitate loans, enforce repayment and otherwise set and enforce the terms of these instruments,” said Andrea Seidt, NASAA’s Corporation Finance Section Committee Chair and Ohio Securities Commissioner.
The proposed statement of policy is posted on the NASAA website with instructions to the public on how to submit comments. The deadline for submitting comments is April 21, 2022. Following the public comment process, the statement of policy may be submitted to the NASAA membership for approval.
Formed in 1919, NASAA is a nonprofit association of state, provincial, and territorial securities regulators in the United States, Canada, and Mexico. NASAA has 67 members, including the securities regulators in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands with a shared mission of protecting investors from fraud and abuse. For more information, visit: www.nasaa.org. To contact a state or provincial securities regulator, visit https://www.nasaa.org/contact-your-regulator.
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Jeanne Hamrick | Director of Communications
Karen Grajales | Communications & Investor Outreach Manager