PERU Law and Practice Contributed by: Luis Ernesto Marín and Andrés Kuan-Veng, Rubio Leguía Normand
offered by financial system companies are not subject to general sales tax) carries financial significance and has led some companies to consider the advantages of becoming a credit company ( Empresa de Créditos ). As a type of financial system company that does not take public savings, credit companies are exposed There is no specific regulation that dictates the underwriting processes used by industry partici - pants. In general, online lenders in Peru use a variety of underwriting processes to assess the creditworthiness of potential borrowers. These may include the use of credit scoring models, analysis of financial statements, and review of other relevant data, such as employment history or educational background. to a lesser regulatory burden. 4.2 Underwriting Processes Some online lenders may also use alternative data sources, such as social media activity or mobile phone usage patterns, to supplement traditional credit data in their underwriting pro - cesses. The specific underwriting process used by online lenders may vary depending on the lender’s business model and target market. However, regardless of the process used, online lenders are expected to comply with relevant consumer protection laws and regulations, including those related to fair lending practices and data privacy. 4.3 Sources of Funds for Fiat Currency Loans In Peru, the fintech industry has several sources of funds for loans, including peer-to-peer (P2P) lending, lender-raised capital, taking deposits, and securitisations. Each of these sources has its own legal and regulatory issues associated with it.
• P2P lending – P2P lending platforms connect borrowers with individual or institutional lend- ers. These platforms are required to comply with regulations set by the SBS. The SBS has specific guidelines for P2P lending platforms, which include registration, reporting require - ments, and disclosure of information. Addi - tionally, P2P platforms should comply with AML and CFT regulations, as well as consum - er protection and data protection laws. • Lender-raised capital – fintech lending companies have the option to raise capital from investors such as venture capital firms, private equity funds, or other institutional investors. However, if they choose to do so through a public offering, they must comply with securities regulations set by the SMV. These regulations include disclosure require - ments and filing the necessary documenta - tion. • Taking deposits – financial institutions author - ised to enter financial intermediation activi - ties are allowed to take deposits from the public in Peru. Fintech companies that want to accept deposits need to obtain a licence from the SBS and comply with its regulations, including capital requirements, risk manage - ment, and reporting obligations. • Securitisations – fintech companies have the option to use securitisation as a source of funds by pooling loans into securities and selling them to investors. However, if they choose to do so through a public offering, securitisations are subject to regulations set by the SMV. These regulations include regis - tration and disclosure requirements. Each source of funds for loans in the Peruvian fintech industry comes with its own set of legal and regulatory challenges. Fintech companies must comply with the regulations set by vari - ous authorities, such as SBS, SMV, INDECOPI,
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