pip
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Post by pip on Nov 23, 2019 20:51:42 GMT
The experience of Funding Secure (FS) to me was a real eye opener. The FCA's regulation seems to be in practice useless and FS' backup plans appeared to be non existent. In a sector where retail investors have next to no visibility of whats under the bonnet, I have now no confidence of what other problems are lurking.
Some industry people say platforms failing is a natural process is a new sector. That may be fine in sectors where people are not depositing their cash, but I don't fancy my money going up in smoke every time I make the wrong call on a platforms health.
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Nov 23, 2019 22:46:31 GMT
I am reducing my overall exposure somewhat, but of more significance is that i am exiting platforms that pay >8% and have over half my funds in platforms paying <5%. It's not only FS, there was Col and then L and MT does not seem to be writing much if any new business.
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hantsowl
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Post by hantsowl on Nov 23, 2019 23:39:04 GMT
I moved as much as I could out of FS a while ago when the defaults started piling up. Same with Ly and now with MT. I admit to being caught out by Col, but the situation there was different. Overall I am not reducing since I am moving the funds into what I consider to be more robust p2p companies (Pl, CP and Cr). I am maintaining Abl for now, but reducing Rel and AC.
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Post by gramsky on Nov 24, 2019 12:00:43 GMT
I will now only manually invest in loans with a 'first charge security' and have 3 IFISAs. I have 50% of my funds with AC, 30% with R******x and 20% in L***L***Invest. After the recent problems with a few AC loans and the closing of GBBA & PSA i want to reduce my exposure, but don't know where to transfer to. I am looking for 7%+ interest, backed by first charge security in property in a well managed liquid platform. Anyone have any ideas. Thanks
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rogedavi
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Post by rogedavi on Nov 24, 2019 12:45:09 GMT
I will now only manually invest in loans with a 'first charge security' and have 3 IFISAs. I have 50% of my funds with AC, 30% with R******x and 20% in L***L***Invest. After the recent problems with a few AC loans and the closing of GBBA & PSA i want to reduce my exposure, but don't know where to transfer to. I am looking for 7%+ interest, backed by first charge security in property in a well managed liquid platform. Anyone have any ideas. Thanks I don't think you will find that in P2P sadly anymore. I retain some exposure to AC, GS & LW and have/am in the process of winding down everything else. Even those three I monitor very closely the PF status and think unless something is done about the direction of travel there I will probably try to exit those as well. The best for me at the moment is WA which offers corporate bonds @ 6-8% yield to maturity depending on your risk appetite. It has a place on these boards but is not P2P at all. Its a fintech offering retail investors direct assess to the fixed income / bond market.
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hantsowl
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Post by hantsowl on Nov 24, 2019 14:40:28 GMT
I will now only manually invest in loans with a 'first charge security' and have 3 IFISAs. I have 50% of my funds with AC, 30% with R******x and 20% in L***L***Invest. After the recent problems with a few AC loans and the closing of GBBA & PSA i want to reduce my exposure, but don't know where to transfer to. I am looking for 7%+ interest, backed by first charge security in property in a well managed liquid platform. Anyone have any ideas. Thanks PL has a VERY liquid SM with first charge loans and most have rental income to cover interest payments. CR has quality loans and a rarely used SM. Both have £1000 minimum per loan. CP has a lower limit but shorter loans so no SM.
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mrk
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Post by mrk on Nov 24, 2019 16:53:05 GMT
PL has a VERY liquid SM with first charge loans and most have rental income to cover interest payments. CR has quality loans and a rarely used SM. Both have £1000 minimum per loan. CP has a lower limit but shorter loans so no SM. PL = PropLend and CP = CrowdProperty I assume, but what's CR? And why are people always so keen to save a few letters at the cost of making things more difficult to read and to search for? 😉
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benaj
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Post by benaj on Nov 24, 2019 17:08:02 GMT
PL has a VERY liquid SM with first charge loans and most have rental income to cover interest payments. CR has quality loans and a rarely used SM. Both have £1000 minimum per loan. CP has a lower limit but shorter loans so no SM. PL = PropLend and CP = CrowdProperty I assume, but what's CR? And why are people always so keen to save a few letters at the cost of making things more difficult to read and to search for? 😉 Capital Rise? p2pindependentforum.com/thread/7741/fca-authorised-ifisa-list
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hantsowl
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Post by hantsowl on Nov 24, 2019 20:17:27 GMT
PL has a VERY liquid SM with first charge loans and most have rental income to cover interest payments. CR has quality loans and a rarely used SM. Both have £1000 minimum per loan. CP has a lower limit but shorter loans so no SM. PL = PropLend and CP = CrowdProperty I assume, but what's CR? And why are people always so keen to save a few letters at the cost of making things more difficult to read and to search for? 😉 CR == CapitalRise. I think the use of few letters may have come about because of people slating platforms on here. Using few letters can add ambiguity to the name. (At least that is what I believe, but I could be wrong...I just follow the trend). There was a phase where updates referred to names such as Funny Circles or Fancy Critters rather than FC, but that seems to have stopped for now.
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Post by propman on Nov 25, 2019 17:22:21 GMT
FS may have given some insight into the higher rate P2Ps, but doesn't change my view of the lower rate alternatives. Reducing exposure for other reasons (economic uncertainty, reduced funding availability of P2Ps, bad debts exceeding estimates etc.).
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pip
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Post by pip on Nov 28, 2019 16:31:32 GMT
Pretty damning that 69% of responders on a p2p forum are planning to in some form reduce their exposure to p2p.
If this is not a wake up to the industry nothing will be. It is no longer acceptable to bat away criticism by saying it’s a natural evolution of a new sector. Not when that natural process includes my hard earned money going up in smoke.
Pivotal moment for the sector. Yes new regulations coming in 9th September but it’s not new regulations we need but a genuine confidence that the FCA is ensuring that each company has good controls, a plan in place to protect investors in the event of platform failure and proper ring fencing of investor assets. Recent failures show that none of these are in place.
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Godanubis
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Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on Nov 28, 2019 17:24:07 GMT
I used to work for NHS and 60% in my field wanted to get out. I think it was 50% overall... Most of my buy to let friends are reducing their investments. Frankly with new 3-4% extra tax on property purchases and reduced price rises I can’t see how anybody in London still makes a profit.
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blender
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Post by blender on Nov 29, 2019 12:08:06 GMT
Pretty damning that 69% of responders on a p2p forum are planning to in some form reduce their exposure to p2p. If this is not a wake up to the industry nothing will be. It is no longer acceptable to bat away criticism by saying it’s a natural evolution of a new sector. Not when that natural process includes my hard earned money going up in smoke. Pivotal moment for the sector. Yes new regulations coming in 9th September but it’s not new regulations we need but a genuine confidence that the FCA is ensuring that each company has good controls, a plan in place to protect investors in the event of platform failure and proper ring fencing of investor assets. Recent failures show that none of these are in place. Are you not just asking for the equivalent of FSCS protection for p2p operators, just in the context of loan capital? It's hard to argue that you will take the risk to capital from the borrowers but not from the platforms. FCA's response is just to steer people away from p2p, not to try to improve protection for those who ignore the warnings. Personally I have not reduced my total cash in p2p, but have reduced my exposure (I hope) by altering the balance among platforms and taking a lower return.
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mrk
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Post by mrk on Nov 29, 2019 15:32:27 GMT
What I'm doing as a result of platforms going into administration is:
1. Get out of non-UK platforms. If it's so difficult to deal with administrators in the UK (e.g. Lendy AML checks), go figure what would happen if the company is based in another country. 2. Think very carefully before opening another IFISA. Previously I decided to keep some of those offering higher-returns in ISAs for tax reasons, but have now realised it can be more difficult to get the funds out quickly if needed from an ISA, because of the transfer process / possible exit fees. 3. Generally reduce exposure / prefer lower risk platforms.
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ashtondav
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Post by ashtondav on Dec 3, 2019 18:24:36 GMT
Well, assuming the members of this forum are the best informed and probably the larger investors, the results of this poll show the industry has a lot of work to do. The recent knee jerk reactions of AC, RS, LW, FC and the inability to get anywhere near the advertised rates on ZOPA must end.
A LOT OF WORK. So get bl**dy cracking.
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