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Post by dan1 on Feb 21, 2018 10:36:48 GMT
In the interests of transparency I would like to see the FCA mandate all platforms to make available to investors in a particular loan a full and complete list of borrower transactions.
At present investors see their own transaction history, that is their transactions with the client account. When money is transferred to/from the client account we trust the platform to send/receive it from the borrower but we have no transaction record of this.
I don't believe this request should be onerous for platforms and we must remember that this is peer-to-peer or peer-to-business lending and we should be able to trace the relationship from investor to borrower and (hopefully, assuming there are repayments) back again.
I'd be interested in thoughts on why this would not be possible from those who know a great deal more than I do about these matters?
[this post has been prompted by knowledge that platforms retain interest, service loan repayments themselves, and delayed payment to investors even though the borrower has paid on time.]
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stub8535
Member of DD Central
personal opinions only. Not qualified to advise on investment products.
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Post by stub8535 on Feb 21, 2018 10:58:55 GMT
In the interests of transparency I would like to see the FCA mandate all platforms to make available to investors in a particular loan a full and complete list of borrower transactions. At present investors see their own transaction history, that is their transactions with the client account. When money is transferred to/from the client account we trust the platform to send/receive it from the borrower but we have no transaction record of this. I don't believe this request should be onerous for platforms and we must remember that this is peer-to-peer or peer-to-business lending and we should be able to trace the relationship from investor to borrower and (hopefully, assuming there are repayments) back again. I'd be interested in thoughts on why this would not be possible from those who know a great deal more than I do about these matters? [this post has been prompted by knowledge that platforms retain interest, service loan repayments themselves, and delayed payment to investors even though the borrower has paid on time.] Good suggestion dan1. It may make more work for a multiple loan borrower/ platform. Possible auction sale of one part of a set of security items being split between multiple loans. Think railway memorabilia on fs. Target turn round times from incoming payment to it being disbursed to lenders in standard circumstances could help as well. Would you show transactions into and out of administrators on lenders accounts prior to money being disbursed? Possibly difficult to manage and it would add to the question traffic for platform taking up time. Maybe auction lot sale money after costs could be shown with expected date for the money to be on investor accounts. This would be different dependent on asset class (house, watch, gold). I agree that it is irritating at best when platforms hold onto money paid in for most situations and there is no justification.
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bugs4me
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Post by bugs4me on Feb 21, 2018 11:59:18 GMT
<snip> In the interests of transparency I would like to see the FCA mandate all platforms to make available to investors in a particular loan a full and complete list of borrower transactions. <snip> Good idea but the chances of the FCA stepping in are IMO below zero - they simply do not understand the P2P market even though they are paid to do so. IIRC, there was far more transparency in the early days of P2P than there is now or is it just my imagination? Many platforms have retreated into their shells as just about everything gets funded anyway.
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yangmills
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Post by yangmills on Feb 21, 2018 13:08:12 GMT
In the interests of transparency I would like to see the FCA mandate all platforms to make available to investors in a particular loan a full and complete list of borrower transactions .... Completely agree. P2P is about borrowers facing lenders with the platform purely as an intermediary. So we should be able to see an audit trail for every cashflow in that process. The probability of this happening is low. Perhaps the FCA should mandate but there is no pressure on them too from any party in the process. First, the platforms themselves have a vested interest in maintaining a level of opacity. For example, they want to hide their fee structure from lenders (and the competition) and showing every cashflow transaction would provide too much visibility. Second, they understand that their target audience - savers - simply don't demand this information. The more detail they provide, the more complex P2P looks. Even on this board there is still a preference from many to make P2P as close as possible to a savings account. People want simplicity: deposit some cash, close eyes and when they come back some interest has popped out. They don't like the complexity caused by seeing nasty things like cashflows, balances and ledgers. If you start seeing them, then it makes it seem a lot more like investing and everybody knows that is risky!
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