littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,017
Likes: 1,835
|
Post by littleoldlady on Jan 30, 2017 18:10:10 GMT
These two schemes seem to me to be competitors, but what are the advantages of each? For an investor using the QAA as a temporary holding account pending investment elsewhere on AC the QAA will be more convenient. This comparison is really for those who treat the QAA as a quasi bank account.
Rate: QAA is theoretically variable but has always been 3.75% since launch AFAIK. OC have a target rate and an actual rate which fluctuates but is generally a little higher.
Withdrawals: neither guarantee liquidity but both have offered instant access during the current benign period. We need a downturn to see any difference.
Platform risk: Octopus holding company is much larger than AC. Assuming that they would not let their subsidiary fail then OC has the edge on this.
Transparency on defaults: This is IMO the QAA's biggest weakness, as nobody, possibly not even AC, seems to know who would take the hit. OC wins here.
Speed of investment: The QAA has a cap and when it has been reached in the past there has been a waiting time to get in. OC have a queue, currently zero. Based on experience so far I give QAA the advantage, but OC say they expect to keep the queue short or empty in future.
Any other opinions?
|
|
oldgrumpy
Member of DD Central
Posts: 5,087 
Likes: 3,233
|
Post by oldgrumpy on Jan 30, 2017 18:25:31 GMT
.... Rate: QAA is theoretically variable but has always been 3.75% since launch AFAIK. OC have a target rate and an actual rate which fluctuates but is generally a little higher...... I recall there was a brief interlude (2015?) when the rate was 4.25% (I think).
|
|
mason
Member of DD Central
Posts: 662
Likes: 640
|
Post by mason on Jan 30, 2017 18:51:29 GMT
According to the website: Octopus Choice is the trading name of Octopus Co-Lend Ltd., 33 Holborn, London EC1N 2HT – which is authorised and regulated by the Financial Conduct Authority (FCA registration number 722801).
i.e. we are not under interim permissions and the number has changedSo, it would seem that they are the first of the platforms initially operating under interim permissions to be granted full authorisation by the FCA. Presumably that means they'll be in a position to launch an IF ISA imminently. From their FAQ: WHEN WILL THE OCTOPUS CHOICE INNOVATIVE FINANCE ISA BE AVAILABLE?
Once we have our full authorisation from the regulator, we'll be able to offer an ISA form of Octopus Choice – allowing interest to be earned tax free on new investments of up to £15,240 in the 2016/17 tax year, as well as on the entirety of any existing ISAs that you transfer in.
We're currently working closely with the regulator, the Financial Conduct Authority (FCA), to ensure we're doing everything we can to receive our full permissions as quickly as possible: watch this space!So that would be another advantage over AC, at least initially.
|
|
|
|
Post by d_saver on Jan 30, 2017 19:03:03 GMT
Speed of investment: The QAA has a cap and when it has been reached in the past there has been a waiting time to get in. OC have a queue, currently zero. Based on experience so far I give QAA the advantage, but OC say they expect to keep the queue short or empty in future. Any other opinions? Hi, Are you sure the queue is empty? I've only been invested with them a few months, but there has always been a queue. I did note over the weekend they started showing 'loans open' instead of queue time, but even if you looked when there was a queue, there were open loans. I had thought this was just a change in presentation? I have uninvested cash on deposit with them, so if the queue is empty, I shall have to ask why... Getting back to the question though, I'm invested in both. I did however read some articles about predictions for London house pricing over the weekend. One of the diversity concerns for me is OC seem very concentrated in this area. My choice at the moment is to invest in both, for diversity, though I would say AC must be better in this respect. Horses for courses though. AC loans I might consider slightly higher risk, but you have the theoretical protection fund. I'm counting them as fairly even, part of my asset class distribution and investing in both.
|
|
mason
Member of DD Central
Posts: 662
Likes: 640
|
Post by mason on Jan 30, 2017 19:19:07 GMT
|
|
|
|
Post by d_saver on Jan 30, 2017 19:30:19 GMT
Excellent. Thanks. Must have missed that post... Will need to see if my money gets invested tomorrow 
|
|
|
|
Post by davee39 on Jan 30, 2017 22:43:53 GMT
Good summary littleoldlady.
Octopus have finally got some new loans, but the rates are mainly 4%.
Currently my RS 5 yr repayments are being recycled into rolling, but I will be moving some out into AC and Octopus.
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 10,846
Likes: 11,075
|
Post by ilmoro on Jan 31, 2017 0:56:34 GMT
According to the website: Octopus Choice is the trading name of Octopus Co-Lend Ltd., 33 Holborn, London EC1N 2HT – which is authorised and regulated by the Financial Conduct Authority (FCA registration number 722801).
i.e. we are not under interim permissions and the number has changedSo, it would seem that they are the first of the platforms initially operating under interim permissions to be granted full authorisation by the FCA. Fifth actually after Folk2Folk, Landbay, Lending Crowd, LendingWorks, sixth if you include UKbondnetwork, not all those have ISA Manager status. Statement around the time of getting Manager status implied it wouldnt be this financial year. I have a sneaky feeling that AC will be good to go with an IFISA as soon as they get their permissions. I think they are using Goji as a third party provider and they are ready and 'pestering' those platforms that have the permission to get on with it.
|
|
mason
Member of DD Central
Posts: 662
Likes: 640
|
Post by mason on Jan 31, 2017 7:19:41 GMT
So, it would seem that they are the first of the platforms initially operating under interim permissions to be granted full authorisation by the FCA. Fifth actually after Folk2Folk, Landbay, Lending Crowd, LendingWorks, sixth if you include UKbondnetwork, not all those have ISA Manager status. Ok, thanks, I stand corrected. I'd assumed those (I'd heard of  ) were new entrants to the market who didn't previously operate under interim permissions. That answers another question I posed elsewhere. To be honest, I'd rather open my first IF ISA at AC since the combination of the QAA and MLIA will hopefully make it easy to get some return on my money quickly, and then the desired return on my money later on.
|
|
adrianc
Member of DD Central
Posts: 8,964
Likes: 4,797
|
Post by adrianc on Jan 31, 2017 8:22:12 GMT
According to the website: Octopus Choice is the trading name of Octopus Co-Lend Ltd., 33 Holborn, London EC1N 2HT – which is authorised and regulated by the Financial Conduct Authority (FCA registration number 722801).
i.e. we are not under interim permissions and the number has changedSo, it would seem that they are the first of the platforms initially operating under interim permissions to be granted full authorisation by the FCA. Fifth actually after Folk2Folk, Landbay, Lending Crowd, LendingWorks, sixth if you include UKbondnetwork, not all those have ISA Manager status. Not exactly a list of the great and glorious, is it? Some "never heard of 'em", salted gently with a "wish I'd never heard of 'em"...
|
|
trouble
Member of DD Central
Posts: 127
Likes: 97
|
Post by trouble on Jan 31, 2017 9:57:15 GMT
|
|
) were new entrants to the market who didn't previously operate under interim permissions.
