In 2008, the U.S. Securities and Exchange Commission (SEC) required that peer-to-peer companies register their offerings as securities, pursuant to the Securities Act of 1933. The registration process was an arduous one; Prosper and Lending Club had to temporarily suspend offering new loans, while others, such as the U.K.-based Zopa Ltd., exited the U.S. market entirely. Both Lending Club and Prosper gained approval from the SEC to offer investors notes backed by payments received on the loans. Prosper amended its filing to allow banks to sell previously funded loans on the Prosper platform. Both Lending Club and Prosper formed partnerships with FOLIOfn to create a secondary market for their notes, providing liquidity to investors. Lending Club had a voluntary registration at this time, whereas Prosper had mandatory registration for all members.