Financial Conduct Authority  

Calls for ban on non-advised P2P sales

The regulator's new rules due for implementation in December will set new minimums for the level of information platforms must disclose. 

Mr Sinel said: "With all these things there is a balance between stifling enterprise and movement and making sure people do get in and out of these things in a reasonable fashion.

"There is always risk in investment, but those risks need to be flagged up and the fee structure needs to be flagged and the security needs to be flagged."

Scott Gallacher, chartered financial planner at Rowley Turton Private Wealth Management, said he has always had concerns about the P2P market, warning the general public was unlikely to appreciate the potential risks associated with the sector. 

He added: "I’m not sure an outright ban would be appropriate but certainly people should be made fully aware of the risks they are taking." 

Darren Cooke, chartered financial planner at Red Circle Financial Planning, said he would like to see P2P products banned to the general public in any form, advised or not. 

Mr Cooke said: "I can’t think of any advisers I know who recommend it to clients, I certainly wouldn’t. So if they made it advised only that would pretty much kill it anyway. I think that says it all really." 

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