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Post by dan1 on Nov 26, 2019 9:40:42 GMT
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Post by propman on Nov 26, 2019 9:55:12 GMT
Given that there is little difference between mini-bonds and P2P loans, I would be interested to know what the P2B Platforms are doing to ensure that they comply with this, or is the assumption that they are excluded?
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jlend
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Post by jlend on Nov 26, 2019 10:25:25 GMT
Better late than never. I was lucky enough to be in a mini bond where the FSCS paid compensation, following prior successful sample FOS claims and court enforcement orders. Investors in many other mini bonds have not been so lucky. Shoddy FCA oversight of the mini bond industry to date...
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Post by propman on Nov 26, 2019 11:22:30 GMT
Better late than never. I was lucky enough to be in a mini bond where the FSCS paid compensation, following prior successful sample FOS claims and court enforcement orders. Investors in many other mini bonds have not been so lucky. Shoddy FCA oversight of the mini bond industry to date... Was that for inappropriate advice from an IFA or other promoter?
I don't think FCA/FSCS should be responsible for frauds.
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registerme
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Post by registerme on Nov 26, 2019 12:20:37 GMT
Yeah I heard Andrew Bailey (?) talking about this on the Today programme this morning. I was surprised at the emphasis he placed on inappropriate promotion of the mini-bonds and immediately wondered how that might reflect on P2P (platforms).
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adrianc
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Post by adrianc on Nov 26, 2019 12:23:26 GMT
Yeah I heard Andrew Bailey (?) talking about this on the Today programme this morning. I was surprised at the emphasis he placed on inappropriate promotion of the mini-bonds and immediately wondered how that might reflect on P2P (platforms). The key bit that was in there was the promotion to retail investors. He specifically said (albeit in a throw-away) that HNWIs would not fall under the scope. I would presume that self-cert sophisticated investors would also be outside - so pretty much same story as P2P platforms for the last year or two.
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jlend
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Post by jlend on Nov 26, 2019 12:41:26 GMT
Better late than never. I was lucky enough to be in a mini bond where the FSCS paid compensation, following prior successful sample FOS claims and court enforcement orders. Investors in many other mini bonds have not been so lucky. Shoddy FCA oversight of the mini bond industry to date... Was that for inappropriate advice from an IFA or other promoter?
I don't think FCA/FSCS should be responsible for frauds.
Misleading promotional material for the bonds approved by a regulated company. The claim was against the regulated company. Didn't involve any IFAs www.thisismoney.co.uk/money/investing/article-7447777/SEB-mini-bond-investors-win-5m-payout-FSCS.htmlIMHO one of the reasons for the new FCA ban is the scale of potential claims via the FSCS could have grown significantly going forward, putting a huge pressure on the levi paid by regulated firms. I think it is as much about protecting vested interests as it is about protecting investors. IMHO there are also plenty of examples of what I would call misleading promotional material from P2P platforms.
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Post by propman on Nov 26, 2019 13:58:50 GMT
Promotion and literature are a huge area of concern to me. I rejected some of the recently collapsed mini bonds when a review of the prospectus failed to identfy the nature of the underlying creditors the returns depended upon. On reflection the vague categories that RS informs their investors about retrospectively falls way short of any reasonable disclosure. Particularly as several times to my knowledge they have informed us after the event of changes to the eligible investors. We are essentially relying on the Platforms credit assessment without even a clear view of their policies, changes or detail on past performance.
As for the announcement, it does mean that restricted investors are allowed to lend on P2Ps but not to invest in Mini-bonds.
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