shimself
Member of DD Central
Posts: 2,563 
Likes: 1,171
|
Post by shimself on Jul 19, 2014 17:44:13 GMT
Am I lending to the borrower or am I lending to SS?
If (heaven forbid) SS goes bust or something do I have recourse to the securities?
|
|
|
|
Post by mrclondon on Jul 19, 2014 18:56:11 GMT
Am I lending to the borrower or am I lending to SS? If (heaven forbid) SS goes bust or something do I have recourse to the securities? As far as we know you are lending to "Lendy Ltd", who are the lender to the end borrower. FCA regulation of P2P requires all platforms to have in place procedures for an orderly wind down of the loan book in the event of the failure of the platform. Here we have to assume that those performing this would a) have access to SS's detailed records about who's "allocated" to which loan & for how much and b) would adhere to these records. In a disorderly windup of Lendy Ltd though, the administrator / liquidator is quite likely to put all the security (boat + property charges) in one pot, the loans in another pot, and the aggregate of each lenders loans in a third pot, and then attempt to balance the three pots out over the subsequent months. Outcome far less certain. Having said all that, I sometimes wonder on how many other platforms where we are supposedly part of a syndicate lending to the end borrower with the platform as our agent, if a disorderly windup occurred would the administror/liquidator really take the trouble to deal with each loan independetly. Hence the importance of the FCA rule on having procedures in place for the orderly wind down of the loan book.
|
|
pikestaff
Member of DD Central
Posts: 2,187
Likes: 1,546
Member is Online
|
Post by pikestaff on Jul 19, 2014 21:28:04 GMT
Does FCA regulation of p2p apply if it's not actually p2p?
|
|
shimself
Member of DD Central
Posts: 2,563
Likes: 1,171
|
Post by shimself on Jul 20, 2014 16:06:14 GMT
Am I lending to the borrower or am I lending to SS? If (heaven forbid) SS goes bust or something do I have recourse to the securities? ...snip........, if a disorderly windup occurred would the administror/liquidator really take the trouble to deal with each loan independetly. Hence the importance of the FCA rule on having procedures in place for the orderly wind down of the loan book. I recollect that (two?) of the bosses at assetz are insolvency practioners.
|
|
|
|
Post by easteregg on Jul 20, 2014 16:08:07 GMT
Does FCA regulation of p2p apply if it's not actually p2p? Saving stream has peer to peer lending permissions, but there are a few companies that we would class as peer to peer that don't have peer to peer permissions from the FCA.
|
|
shimself
Member of DD Central
Posts: 2,563
Likes: 1,171
|
Post by shimself on Jul 20, 2014 16:26:52 GMT
Does FCA regulation of p2p apply if it's not actually p2p? Saving stream has peer to peer lending permissions, but there are a few companies that we would class as peer to peer that don't have peer to peer permissions from the FCA. SS may HAVE p2p permissions, but if the borrower isn't obliged to repay ME (if it's the platform instead) then it isn't p2p. In the thread that prompted this (on TC) someone else, a professional investor, said that they treat SS as one borrower, a good one mind, so they limit their investment accordingly, ie they keep their exposure a long way smaller than on TC.
|
|
