Question to the HM Treasury:

To ask Her Majesty's Government whether they, or the Financial Conduct Authority, have taken any action to (1) monitor, or (2) issue guidance, to peer-to-peer lenders about whether new client inflows should be used to support previous borrowers experiencing financial difficulty and funded by earlier investors.

The Government monitors the peer-to-peer lending sector on an ongoing basis and engages regularly with the Financial Conduct Authority (FCA), who are responsible for the regulation of the sector.

The FCA is operationally independent from Government. The second part of the question, as it relates to the FCA, has been passed on to the FCA. The FCA will reply directly to Lord Myners by letter, and a copy of the letter will be placed in the Library of the House.