michaelc
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Post by michaelc on Feb 28, 2018 19:51:15 GMT
Once that's published it's the end for COL, irrespective of any 'explanation'. My concern is the knock on effect to other platforms, I don't think it'll just be a ripple and it could also take down some other weaker players. Its surely the end already? How could they continue after this? I'm not sure I agree any others will be taken down as a result. Its not like a bank falling over owing money to lots of other banks.... Also, unlike a bank, their can't be a "run". Money is tied up for relatively long periods so a company can't crash by hoards of angry investors like me knocking on their door and wanting their money back. Of course, it might have an effect longer term but hopefully a positive one in terms of lessons learned both by regulation and by best practice. I have to say I feel stupid for not realising the FCA licence had lapsed. One lesson that the FCA might take away immediately is that they ought to have the power to force a company who is still trading and has lapsed their membership to inform all their customers of that fact. Someone at the FCA must have known this had happened !
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Post by investor1925 on Feb 28, 2018 19:51:24 GMT
It seems to me that the most plausible explanation remains that the FCA has precipitated these events. Perhaps the window for Collateral obtaining full authorisation has expired, along with any grace period they may have been given to sort things out. Continuing to operate in such circumstances would constitute a criminal offence, so I could understand the directors taking fairly swift action if that really was the situation they faced. I just can't see the FCA making a P2P platform shut down & thus locking in all the investors money. There must be some other reason
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IFISAcava
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Post by IFISAcava on Feb 28, 2018 19:52:02 GMT
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mary
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Post by mary on Feb 28, 2018 19:52:56 GMT
Likely those that are not yet fully authorised by the FCA. I don't see it having much impact on the significant players, but will happily do my bit to help frightened investors exit their positions if I am proven wrong. Nearly all other major platforms have at least interim FCA authorisation meaning ring-fenced client money and suitable wind down procedures. Collateral - it would appear at least at face value - may not have such safeguards in place. I don't think the FCA check daily on what any particular platform does. Getting interim or full authorisation only means showing that you have procedures that match the rules. Actually following those procedures is completely different and a 'trust me Gov, honest' promise. I fully expect that the bigger ones do comply, but everyone? And there are platforms out there that don't even pretend to have any authorisation (Bondmason, for one).
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mason
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Post by mason on Feb 28, 2018 19:56:03 GMT
It seems to me that the most plausible explanation remains that the FCA has precipitated these events. Perhaps the window for Collateral obtaining full authorisation has expired, along with any grace period they may have been given to sort things out. Continuing to operate in such circumstances would constitute a criminal offence, so I could understand the directors taking fairly swift action if that really was the situation they faced. Sorry, but I am not convinced. In that case the directors would have sent a message saying something more reassuring like: 'Collateral has a regulatory issue which is solving as quickly as possible. All the lenders' money is safe and in the hands of our borrowers or (as appropriate) in our segregated clients account. Trading will restart as soon as possible according to the authorities permissions'. That would have helped the business going (and even facilitated a sale to another authorised outfit). Unfortunately this did not happen, and to me it means there are other and deeper issues. Neither am I, which is why I said in the next paragraph "I've mentally written off the money I had invested here". I've just yet to hear a more plausible theory of what such deeper issues could be. I'm not ready to believe any speculation about nefarious action being taken by individuals within the company just yet.
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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 Feb 28, 2018 19:56:38 GMT
How brave do you feel? I'm guessing if the brown stuff hits the rotating blades there will be good availability on other secondary markets. GRAB A BARGAIN Now over 50 loans on FS some nearly new offering discounts of 1% to buy >>
When there is !!!PANIC!!!! the herd run and the lions pick off the weak and gorge themselves. The cool cats are watching taking advantage. It's not a virus other P2P platforms catch.
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Post by dan1 on Feb 28, 2018 19:58:16 GMT
Anyone remember roughly how much was invested in the platform From my own records last updated on 25 Feb (please note these numbers could be way out, treat with caution my excel skills are lacking)... Loan book £17,896k Available £1,059k (I don't know the primary/secondary market split) Not drawndown £2,185k (again I don't know what was funded)
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Monetus
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Post by Monetus on Feb 28, 2018 19:58:22 GMT
Food for thought? p2pindependentforum.com/post/241551Collateral also said this... Is there any way to find out from the FCA what the status is of their "full" application - i.e. did they ever even make one? Hi littonowl,We're currently going through full permissions and will review IFISA's once this is complete.Many thanks,Gordon
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mason
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Post by mason on Feb 28, 2018 20:00:15 GMT
Nearly all other major platforms have at least interim FCA authorisation meaning ring-fenced client money and suitable wind down procedures. Collateral - it would appear at least at face value - may not have such safeguards in place. I don't think the FCA check daily on what any particular platform does. Getting interim or full authorisation only means showing that you have procedures that match the rules. Actually following those procedures is completely different and a 'trust me Gov, honest' promise. I fully expect that the bigger ones do comply, but everyone? And there are platforms out there that don't even pretend to have any authorisation (Bondmason, for one). Interim permissions were granted to all companies that previously operated under a consumer credit licence. Full permissions absolutely required the platform to demonstrate it had the procedures to match the rules. Which is why the process was so slow and required several platforms to make significant changes in the way they operated.
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Post by Proptechfish on Feb 28, 2018 20:02:50 GMT
'Server upgrade' excuse is starting to wear a little thin after 3 days! Not even FB would take that long to update. Starting to believe and accept they have pulled the plug. Zero warning or communication, directorship changed hands on the 18th of Feb and the rates they were offering were tasty but lets face it, unsustainable. Email is dead so are the phone lines. I believe my funds are now gone with the wind, although i will be formalising a complaint with the FCA by the end of the week if there is no change, just for the hell of it. I knew the risks of P2P but as a result of the collapse of Collateral i will be pulling all of my investments from P2P. P2P is just far too much of a wild west, and perceived 'safer' options are offering pitiful returns, in some cases sub 3%, below inflation, and effective loss. I think the party's over for P2P
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Post by stevel on Feb 28, 2018 20:06:07 GMT
How brave do you feel? I'm guessing if the brown stuff hits the rotating blades there will be good availability on other secondary markets. GRAB A BARGAIN Now over 50 loans on FS some nearly new offering discounts of 1% to buy >>
When there is !!!PANIC!!!! the herd run and the lions pick off the weak and gorge themselves. The cool cats are watching taking advantage. It's not a virus other P2P platforms catch. Still an appetite for loans on Abl, the new one's going fast
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mason
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Post by mason on Feb 28, 2018 20:06:31 GMT
Never added as it did not obtain full authorisation. Last we heard, Collateral was working with the FCA towards full authorisation.
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greenslime
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Post by greenslime on Feb 28, 2018 20:09:49 GMT
My concern is the knock on effect to other platforms, I don't think it'll just be a ripple and it could also take down some other weaker players. 'Collateral damage' indeed .... Not hugely affected if Col has gone belly up. But it was where I intended putting what was freed up as I run down my holdings in FS, which I note is another P2P business where the transition from bling to buildings hasn't been trouble free. Maybe there's a message there.
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Post by dualinvestor on Feb 28, 2018 20:19:58 GMT
Whilst I understand the urge to post and raise the anxiety levels of yourself and others, 27 pages of them. Ask yourself what have you achieved? Nothing. What will be will be and no amount of speculation here or anywhere else will expedite matters. You know there is a problem, you do not know its reason or probable outcome however much the urge to speculate. You will just have to wait and accpt instant answers do not always come. What have you achieved precisely with your message? As a result of this discussion we had numerous journalists taking over the case and starting investigating (and some will soon write pieces on this), the FCA taking notice of the matter and starting its work, the police being alerted of a potential fraud and (very likely) the management of Collateral alerted that a group of lenders are carefully following their next steps and will not let any stone unturned... Certainly more than what you achieved I guess. And what have you achieved with yours except perhaps heightened a few anxieties? Don't you think all the things you mentioned would have happened anyway?
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sjg
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Post by sjg on Feb 28, 2018 20:32:27 GMT
It would be interesting to see what some of the borrower's think as well. Bet there not happy either!!!
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