One of the largest providers of peer-to-peer loans in the State has shut down a key part of its business aimed at smaller investors, blaming an absence of regulation in the crowdfunding space.
Chief executive Derek Butler said that, in the absence of a regulatory framework, dealing with the smaller borrowers that hold the accounts was proving to be too taxing for the company.. “The responsibility to educate and inform to make sure smaller investors are making responsible investments is significant,” he said, adding that there is a “much heavier cost impact” from servicing the smaller customers.
Mr Butler said he had no confidence the Government would bring in legislation governing the sector, promised by Minister for Finance Paschal Donohoe in the last budget. “Despite our efforts to advocate for a regulatory regime, there is none.