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Perspective

May 27, 2011

Peer-to-Peer Lending and Developments in SEC Regulation

The need for innovative lending options raises consumer protection issues that the government has yet to resolve. By Will Bollard of Sheppard Mullin Richter & Hampton LLP


As peer-to-peer lending companies are increasing the number of loans arranged directly between borrowers and lenders without the intermediation of traditional financial institutions, Congress and the Securities and Exchange Commission are seeking to find the proper mechanisms to regulate such investments for the general consumer. While some regulatory efforts have taken shape, it is still unclear how the federal government will balance its desire to protect consumers with ...

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