LENDINGCROWD investors must get a 100 per cent pass rate on its appropriateness test to use the platform.
The peer-to-peer business lender has been using the test with new investors since the start of November and plans to release it for existing customers over the next week or so.
Assetz Capital on Monday revealed investors must get at least 70 per cent of its test questions correct to pass but Darren Cairns, chief marketing officer for LendingCrowd, said the platform’s interpretation of the regulations is that there should be a 100 per cent pass rate.
RateSetter has followed a similar approach to LendingCrowd and said investors must get all questions correct but can try as many times as they like.
Cairns said investors are tested on their knowledge of P2P lending and issues such as liquidity and the lack of Financial Services Compensation Scheme (FSCS) protection.
“We have had our appropriateness tests in place for nearly two weeks,” Cairns said.
“We have been focused on getting it right rather than shouting about it.
“There are 10 questions and if you fail to answer any correctly you can’t progress and must start again.”
He said 90 per cent of those who started the process have completed the assessment by correctly answering all 10 questions in the past two weeks.
Rad more: LendingCrowd reports data breach
It comes as LendingCrowd revamped the investor section of its website to provide more information on individual loans and borrowers.
It has added extra information such as how up to date a borrower is with repayments, whether they are repaying just capital, interest or both and the credit band of the loan.
Investors can also now see any fees a borrower is due to pay or has paid.
First seen on P2P Finance News