Provisional Measures for the Administration of the Business Activities of Online Lending Information Intermediary Institutions entered into force on 17 Aug. 2016.
There are 47 articles in total. The Measures aim to regulate the business activities of online lending information intermediary institutions (namely Peer-to-Peer Lending, “P2P”) within the territory of China. Key points of the Measures are as follows:
- P2P refers to online lending information intermediary institutions taking the Internet as the primary channel, to provide information search, information release, credit rating, information exchange, credit matching, and other services for direct lending between borrowers and lenders.
- Service providers shall file with the local financial regulatory authorities for the record.
- Service providers shall examine the information of users and information on fund-raising projects, to prevent fraud or illegal transactions.
- Service providers shall not raise funds for themselves, and shall not be lenders or guarantors. Service providers shall not operate a similar business with banks or other financial institutions, such as concentrating funds of lenders, issuing wealth management products, or conducting asset securitization business.