Peer-to-peer lending platforms: securities law considerations

2015 ◽  
Vol 16 (3) ◽  
pp. 15-18 ◽  
Author(s):  
Robert H. Rosenblum ◽  
Susan A. Gault-Brown ◽  
Amy B. Caiazza
Keyword(s):  
Financial Services ◽  
Business Models ◽  
Regulatory Compliance ◽  
Peer To Peer ◽  
Content Type ◽  
Public Offerings ◽  
Consumer Privacy ◽  
Peer Lending ◽  
Investment Advisers ◽  
Securities Laws

Purpose – To provide an overview of the basic model used by many peer-to-peer lending platforms and some of the key peer lending regulatory and structuring considerations under the federal securities laws. Design/methodology/approach – Explains how the basic peer lending model works, how “borrower dependent notes” or “BDNs” may be offered in private placements or less commonly through public offerings, how companies engaged in peer lending are compensated, how sponsors of peer lending programs generally avoid registration as broker-dealers under the Securities Exchange Act of 1934, as investment advisers under the Investment Advisers Act of 1940 and as investment companies under the Investment Company Act of 1940, and how peer lending platforms are structured to take into account the laws that govern online transactions, consumer privacy, and other related issues. Findings – The authors expect that peer-to-peer lending platforms will continue to mature and evolve, and they expect that the issues discussed in this article will continue to drive their structuring decisions, business models, and regulatory compliance under the federal securities laws. Originality/value – Practical guidance from experienced financial services lawyers.

scholarly journals The Fintech Phenomenon: Protection of Consumer Privacy Data in Online Lending

2021 ◽  
Vol 21 (2) ◽  
pp. 185-194
Author(s):  
Ika Dewi Sartika Saimima ◽  
Valentino Gola Patria
Keyword(s):  
Financial Services ◽  
Legal Theory ◽  
Personal Data ◽  
Peer To Peer ◽  
Legal Norms ◽  
Consumer Privacy ◽  
P2p Lending ◽  
Peer Lending ◽  
The One ◽  
Online Lending

Abstract   Financial technology innovation that occurs nowadays leads to accelerated changes in the financial sector. However, these developments are like double-edged swords, on the one hand they provide convenience for consumers, on the other hand pose risks for consumers related to the confidentiality of their personal data. Money lending business through Peer to Peer lending (P2P lending) system often results in consumers receiving threats when they are late making payments. This paper presents several cases that result in consumers experiencing personal data theft, receiving threats directed at relatives or acquaintances. Even committing fraud by taking money from borrowers or customers without following the regulations made by the Financial Services Authority (OJK). The research data is carried out in a qualitative normative way where the data is translated based on legal norms and uses legal theory that can explain and answer existing legal problems.   Keywords: Consumer Protection, Peer to Peer lending (P2P lending), Private Data Protection   Abstrak   Inovasi teknologi keuangan yang terjadi saat ini mengarah pada akselerasi perubahan di sektor keuangan. Namun perkembangan tersebut ibarat pedang bermata dua, di satu sisi memberikan kemudahan bagi konsumen, di sisi lain menimbulkan risiko bagi konsumen terkait kerahasiaan data pribadinya. Bisnis money lending melalui sistem Peer to Peer lending (P2P lending) seringkali mengakibatkan konsumen mendapat ancaman ketika mereka terlambat melakukan pembayaran. Makalah ini menyajikan beberapa kasus yang mengakibatkan konsumen mengalami pencurian data pribadi, menerima ancaman yang ditujukan kepada kerabat atau kenalan. Bahkan melakukan penipuan dengan mengambil uang dari debitur atau nasabah tanpa mengikuti ketentuan Otoritas Jasa Keuangan (OJK). Data penelitian dilakukan secara normatif kualitatif dimana datanya diterjemahkan berdasarkan norma hukum dan menggunakan teori hukum yang dapat menjelaskan dan menjawab permasalahan hukum yang ada. Kata kunci: Peer to Peer lending (P2P lending), Perlindungan Konsumen, Perlindungan Data Pribadi   Kata Kunci: Perlindungan Konsumen, Peer to Peer lending (P2P lending), Perlindungan Data Pribadi

SEC adopts regulation systems compliance and integrity

2015 ◽  
Vol 16 (3) ◽  
pp. 4-14 ◽  
Author(s):  
James Burns ◽  
Georgia Bullitt ◽  
Howard Kramer ◽  
Jack Habert ◽  
James Doench
Keyword(s):  
Cyber Security ◽  
Financial Services ◽  
Periodic Review ◽  
Content Type ◽  
Security Issues ◽  
Market Participants ◽  
Investment Companies ◽  
Policies And Procedures ◽  
Investment Advisers

Purpose – To explain the requirements of Regulation Systems Compliance and Integrity (“Regulation SCI”) and the new responsibilities of organizations defined as “SCI entities.” Design/methodology/approach – Explains the purpose of Regulation SCI, the responsibilities of SCI entities, systems covered by the rules (“SCI systems”), and specific obligations of SCI entities, including the establishment and periodic review of policies and procedures, compliance with the Exchange Act, designation of “responsible SCI personnel,” appropriate corrective action in response to “SCI events,” notification of systems changes, annual “SCI reviews,” business continuity and disaster recovery testing, and recordkeeping and filing. Discusses future implications for SCI Entities and other market participants. Findings – Regulation SCI launches a broad and extensive overlay of rules and guidance to address systems capacity and integrity issues that have increasingly affected the securities markets. The adoption of this regulation suggests that there will continue to be increased scrutiny by the SEC, FINRA and other regulators of the automated systems and related policies and procedures of all market participants. Practical implications – SCI entities will need to devote considerable attention and resources not just to prevent incidents where possible, but also to establish systems for ensuring thorough compliance and well-documented and reasonable follow-up actions where necessary. All market professionals – including broker-dealers, investment advisers, pension funds and investment companies – should study the new regulation and consider adopting appropriate policies and procedures to address operating as well as cyber security issues with respect to their own critical operating technology. Originality/value – Practical guidance from experienced financial services lawyers.

Research on financial innovations: an interdisciplinary review

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad G. Nejad
Keyword(s):  
Financial Services ◽  
Business Models ◽  
Academic Research ◽  
Research Literature ◽  
Future Research ◽  
Breeding Ground ◽  
Financial Industry ◽  
Content Type ◽  
New Era ◽  
Financial Innovations

PurposeThe financial industry offers a unique setting to study innovations. Financial innovations have fueled the growth of economies, markets and societies. The financial industry has successfully become the breeding ground for innovative services, processes, business models and technologies. This study seeks to provide a holistic view of the literature on financial innovations, synthesize the research findings and offer future directions for research in light of three market developments that are disrupting the industry and opening up a new era for the financial services industry. Disruptions from within and outside the industry offer new generations of radically innovative services. Moreover, new generations of consumers differ from previous generations in their needs and wants and look for innovative ways to handle their financial needs. Finally, significant developments related to financial innovations have emerged in Asia and developing countries.Design/methodology/approachThis study systematically reviews the academic research literature on financial innovations in two phases. The first phase provides a quantitative review of 546 journal articles published between 1990 and 2018. In the second phase, the study synthesizes the extant research on financial innovations and maps them in five research areas: firms' introduction and adoption of FIs, financial innovation development, the outcomes of financial innovations, regulations and intellectual property, and consumers.FindingsThe analysis found that disciplines differ with regard to the employed research methodologies, the units of analysis, sources of data and the innovations they examined. A positive trend in the number of published articles during this period is observed. However, studies have primarily focused on the USA and Europe and less so on other parts of the world. The literature synthesis further identifies research gaps in the available research that highlight future research opportunities in light of the three market disruptions. The financial services industry is on the brink of a new era due to disruptions from within and outside the industry and the entrance of new generations of consumers. Moreover, the financial industry has successfully become the breeding ground for innovative services, processes and business models. Therefore, financial innovations offer promising opportunities for bridging the gap between research on product and service innovations.Research limitations/implicationsThe work provides a holistic and systematic overview of extant research on financial innovations and highlights future research opportunities in light of the three disruptive market developments. It helps researchers take advantage of the opportunities in studying financial innovations while maintaining industry relevance.Originality/valueThe study is the first to review and synthesize the academic research literature on financial innovations across marketing, finance and innovation disciplines. In addition, the study highlights three primary disruptive forces in the financial industry and identifies future research directions in light of these disruptive forces.

SEC targets investment adviser community

2014 ◽  
Vol 15 (1) ◽  
pp. 45-47
Author(s):  
Robert P. Bramnik ◽  
Mauro M. Wolfe
Keyword(s):  
Financial Services ◽  
Design Methodology ◽  
Content Type ◽  
Practical Advice ◽  
Compliance Programs ◽  
The Us ◽  
Investment Advisers

Purpose – To draw attention to the US Securities and Exchange Commission's (SEC) disciplinary focus on the investment adviser community Design/methodology/approach – Describes six recent enforcement cases for disclosure, custody, supervisory, procedural, and other rule violations and compliance failures; explains changes in registered investment adviser (RIA) exemptions following enactment of the Dodd-Frank Act; discusses recent SEC announcements concerning inspections and examinations of RIAs. Findings – The SEC's recent announcements and enforcement actions signal that all advisers (both registered investment advisers and exempt reporting advisers) may want to pay particular attention to their compliance programs and supervisory procedures. Originality/value – Practical advice from experienced financial services lawyers.

A review of the SEC Participating Affiliate No-Action Letters’ relief from Investment Advisers Act of 1940 registration for foreign investment advisers

2017 ◽  
Vol 18 (4) ◽  
pp. 22-28 ◽  
Author(s):  
Wendy E. Cohen ◽  
David Y. Dickstein ◽  
Christian B. Hennion ◽  
Richard D. Marshall ◽  
Allison C. Yacker ◽  
...  
Keyword(s):  
Foreign Investment ◽  
Financial Services ◽  
Design Methodology ◽  
Securities And Exchange Commission ◽  
Content Type ◽  
The Us ◽  
Information Update ◽  
Practical Guidance ◽  
Investment Advisers

Purpose To explain the US Securities and Exchange Commission (the “SEC”) staff’s (the “Staff”) participating affiliate exemption from investment adviser registration for foreign advisers set forth in a line of Staff no-action letters issued between 1992 and 2005 (the “Participating Affiliate Letters”) and to discuss recent guidance issued by the Staff in an information update published in March 2017 (the “Information Update”) with respect to complying with requirements of the Participating Affiliate Letters. Design/methodology/approach Reviews the development of the Staff’s approach regarding the non-registration of foreign advisers that rely on the Participating Affiliate Letters from prior to the issuance of those letters through the Information Update and sets forth recommendations for registered investment advisers and their participating affiliates. Findings While there are arguments that the Information Update goes beyond restating established standards and does not clearly explain whether submission of all listed documentation is required, the Information Update will likely standardize the information submitted to the SEC. Originality/value Practical guidance for advisers relying on the Participating Affiliate Letters from experienced securities and financial services lawyers.

scholarly journals Pengawasan Dalam Kerja Sama Bank Umum dan Penyelenggara Layanan Pinjam Meminjam Uang Berbasis Teknologi Informasi

2021 ◽  
Vol 4 (6) ◽  
pp. 2397
Author(s):  
Nabilla Virnanda Lobo
Keyword(s):  
Information Technology ◽  
Financial Services ◽  
Commercial Banks ◽  
Service Providers ◽  
Peer To Peer ◽  
Reciprocal Relationship ◽  
Regulatory Agencies ◽  
Conceptual Approach ◽  
Supervisory Authority ◽  
Peer Lending

AbstractPartnership is a collaboration between one party and another, where each party plays its respective roles in a reciprocal relationship that benefits each party. This research will discuss the characteristics of the forms of cooperation between commercial banks and information technology-based lending and borrowing service providers (fintech peer-to-peer lending) and then discusses the supervision of regulatory agencies on cooperation in the financial sector. This research is a doctrinal research using a statute approach and a conceptual approach to obtain a clearer picture. The result of this research is that credit distribution cooperation is carried out by taking into account the provisions regarding information technology-based lending and borrowing services while retail investment sales cooperation and non-performing loan management cooperation are carried out by taking into account the provisions concerning banks and / or commercial banks as in the cooperation. commercial banks. The supervisory authority lies with the Financial Services Authority. Keywords: Fintech P2PL; Commercial Banks; OJK.AbstrakPartnership adalah kerja sama antara satu pihak dengan pihak lainnya dimana masing-masing pihak menjalankan perannya masing-masing dalam hubungan timbal balik yang memberikan keuntungan kepada masing-masing pihak. Dalam penelitian ini akan dibahas mengenai karakteristik bentuk-bentuk kerja sama antara bank umum dengan penyelenggara layanan pinjam meminjam berbasis teknologi informasi (fintech peer-to-peer lending) kemudian membahas mengenai pengawasan lembaga otoritas terhadap kerja sama dalam sektor keuangan tersebut. Penelitian ini merupakan penelitian doctrinal research dengan menggunakan pendekatan perundang-undangan (statute approach) dan pendekatan konseptual (conceptual approach) untuk memperoleh gambaran yang lebih jelas. Hasil dalam penelitian ini yaitu kerja sama penyaluran kredit dilaksanakan dengan memperhatikan ketentuan mengenai layanan pinjam meminjam uang berbasis teknologi informasi sedangkan kerja sama penjualan investasi ritel dan kerja sama pengelolaan non-performing loan dilaksanakan dengan memperhatikan ketentuan mengenai bank dan/atau bank umum sebagaimana dalam kerja sama bank umum. Adapun kewenangan pengawasan berada di Otoritas Jasa Keuangan.Kata Kunci: Fintech P2PL; Bank Umum; OJK.

Multi-utility framework: blockchain exchange platform for sustainable development

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jacques Bou Abdo ◽  
Sherali Zeadally
Keyword(s):  
Sustainable Development ◽  
Developing Countries ◽  
Rural Areas ◽  
Business Models ◽  
Rainwater Harvesting ◽  
Developed Countries ◽  
Peer To Peer ◽  
Content Type ◽  
Sustainable Solutions ◽  
Blockchain Technology

Purpose The purpose of this paper is to design a sustainable development platform for water and energy peer-to-peer trading that is financially and economically feasible. Water and other resources are becoming scarcer every day, and developing countries are the neediest for an immediate intervention. Water, as a national need, is considered to be one of the most precious commodities, but it is also one of the main causes for conflicts in the 21st century. Rainwater harvesting and peer-to-peer trading of the harvested water is one of the most convenient, scalable and sustainable solutions but faces organization challenges such as the absence of suitable business models motivating normal users to sell their generated resources (such as water and energy), currency and financial settlement complexities and single utility markets. Design/methodology/approach This paper proposes a multi-utility trading platform based on the blockchain technology which can address the challenges faced by peer-to-peer trading for resources such as energy and water. Findings This paper presents a peer-to-peer multi-utility trading platform that solves the shortcomings of existing utility frameworks reported in the current literature. Originality/value This proposed platform meets the needs of developing countries as well as rural areas of developed countries. The open nature of the proposed design makes it suitable for adoption and use by various stakeholders.

Unethical practices peer-to-peer lending in Indonesia

2019 ◽  
Vol 27 (1) ◽  
pp. 274-282 ◽  
Author(s):  
Taofik Hidajat
Keyword(s):  
Design Methodology ◽  
Secondary Data ◽  
Peer To Peer ◽  
Legal Action ◽  
Content Type ◽  
Unethical Practices ◽  
Legal Sanctions ◽  
P2p Lending ◽  
Peer Lending ◽  
Desk Research

Purpose This paper aims to highlight the existence of illegal peer-to-peer (P2P) lending in Indonesia, unethical practices of P2P lending operators to borrowers, regulatory weaknesses and offer recommendations to reduce unethical practices. Design/methodology/approach This paper is a general discussion through desk research using secondary data from journal papers, research reports, books and papers online. Findings There are regulatory weaknesses in regulating illegal P2P lending. There are no strict legal sanctions for P2P lending operators who act unethically to borrowers. Originality/value This paper discusses the unethical actions of P2P lending operators and the inability of regulations to take legal action against illegal P2P operators.

Factors determining behavioral intentions to use Islamic financial technology

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Darmansyah Darmansyah ◽  
Bayu Arie Fianto ◽  
Achsania Hendratmi ◽  
Primandanu Febriyan Aziz
Keyword(s):  
Latent Variables ◽  
Behavioral Intentions ◽  
Peer To Peer ◽  
Influential Factor ◽  
Equation Modeling ◽  
Data Set ◽  
Content Type ◽  
Peer Lending ◽  
Acceptance Model ◽  
Financial Technology

Purpose The purpose of this paper is to investigate the influential factors on behavioral intentions toward Islamic financial technology (FinTech) use in Indonesia, for all types of FinTech services as follows: payments, peer to peer lending and crowdfunding. Design/methodology/approach This study adopted structural equation modeling using the partial least squares approach to test the hypotheses. Based on purposive sampling, the questionnaire was distributed through an online survey and received 1,262 responses. Findings The results demonstrate that the latent variables, planned behavior, acceptance model and use of technology, have a significant impact on encouraging behavioral intentions to use Islamic FinTech. The “acceptance model” latent variable is the most influential factor. Research limitations/implications This study was conducted only in Indonesia; therefore, the results cannot be generalized to other countries. However, the study provides important strategic guidelines for policymakers in designing a framework to enhance the development of Islamic FinTech and to achieve financial inclusion. It is suggested that future studies include samples from FinTech users in different countries. Originality/value This study adds to the literature especially on the factors affecting behavioral intentions to use Islamic FinTech. There are limited studies concerning this topic, especially for Indonesia. The unique feature of this study is the use of a large primary data set that covers most provinces in Indonesia. Furthermore, this study focuses on three types of Islamic FinTech, namely, payments, peer to peer lending and crowdfunding.

Positioning big data analytics capabilities towards financial service agility

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abeeku Sam Edu
Keyword(s):  
Big Data ◽  
Financial Services ◽  
Data Analytics ◽  
Business Models ◽  
Empirical Test ◽  
Big Data Analytics ◽  
Predictive Modelling ◽  
Financial Service ◽  
Content Type ◽  
It Capability

PurposeEnterprises are increasingly taking actionable steps to transform existing business models through digital technologies for service transformation such as big data analytics (BDA). BDA capabilities offer financial institutions to source financial data, analyse data, insight and store such data and information on collaborative platforms for a quick decision-making process. Accordingly, this study identifies how BDA capabilities can be deployed to provide significant improvement for financial services agility.Design/methodology/approachThe study relied on survey data from 485 banking professionals' perspectives with BDA usage, IT capability development and financial service agility. The PLS-SEM technique was used to evaluate the underlying relationship and the applicability of the research framework proposed.FindingsBased on the empirical test from this study, distinctive BDA usage grounded on the concept of IT capability viewpoint proof that financial service agility could be enhanced provided enterprises develop technical capabilities alongside other relevant resources.Practical implicationsThe study further highlights the need for financial service managers to identify BDA technologies such as data mining, query and reporting, data visualisation, predictive modelling, streaming analytics, video analytics and voice analytics to focus on financial knowledge gathering and market observation. Financial managers can also deploy BDA tools to develop a strategic road map for data management, data transferability and knowledge discovery for customised financial products.Originality/valueThis study is a useful contribution to the burgeoning discussion with emerging technologies such as BDA implication to improving enterprises operations.

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