shimself
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Post by shimself on Mar 2, 2018 17:57:29 GMT
I'm pretty sure/certain that P2P is not covered at all by FSCS. There is FSCS protection afforded to P2P investors in two respects: 1) Cash held on the platform is covered up to £85k (this could include bids on loans that have not yet drawn down) 2) Investments made under advice from a regulated adviser up to £50k So do I owe an apology to Gordon Craig or was it a howler?
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mason
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Post by mason on Mar 2, 2018 17:58:00 GMT
The short story is there were two loans on collateral , one a property and the other some land, both being quoted at specific value's , when i looked deeper into it, both the assets were owned by companies that belonged to curries brother, and both had been purchased at significantly lower prices (10x lower) than the valuations . I contacted collateral and challenged them, and they agreed to remove both from their platform. I could have revealed this on the forum, but they were a fairly new co, and i certainly did not want to start any unrest. It was enough for me to pull everything out of collateral and i never had any inclination to return, i just never trusted them after that. It's rather a shame that you didn't share that, as I left Lendy in part over a very similar issue and it certainly would have given me pause here too.
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mason
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Post by mason on Mar 2, 2018 17:59:04 GMT
There is FSCS protection afforded to P2P investors in two respects: 1) Cash held on the platform is covered up to £85k (this could include bids on loans that have not yet drawn down) 2) Investments made under advice from a regulated adviser up to £50k So do I owe an apology to Gordon Craig or was it a howler? It was a howler. GC suggested "any loss", where the reality is very different.
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micky
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Post by micky on Mar 2, 2018 17:59:27 GMT
There is FSCS protection afforded to P2P investors in two respects: 1) Cash held on the platform is covered up to £85k (this could include bids on loans that have not yet drawn down) 2) Investments made under advice from a regulated adviser up to £50k So do I owe an apology to Gordon Craig or was it a howler? In my humble opinion... it was a massive howler!!
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mason
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Post by mason on Mar 2, 2018 18:01:09 GMT
I stand corrected, that's great news, thanks, Mason. However, I have just copied this from Lendy's website- All loans made through Lendy's platform are secured on UK property; however, your capital is at risk should a borrower default. Funds lent through a peer-to-peer website are not covered by the Financial Services Compensation Scheme (FSCS). Remember, past performance is not a guarantee of future performance. With all investment, capital is at risk. Please obtain independent advice if you are in any doubt as to whether this platform is suitable for you or if you require tax advice. Please review our full risk assessment here. It's a good rule of thumb. After all, how many of Lendy's investors do you suppose are acting after receiving regulated financial advice. Edit: and, unless I missed it, Lendy is not yet fully authorised, so the FSCS would not apply to it at all.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Mar 2, 2018 18:03:29 GMT
And if you read the whole Q and A on that point it is quite clear that he is making the distinctintion as he specifically refers to 'losses suffered as a result of a borrower becoming insolvent' not being covered.
Also on the point about security & recoveries. The Security Trustee (not in administrator) holds the security and would be tasked with pursuing a recovery on the administrators instruction. See the T&Cs for their full role.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Mar 2, 2018 18:22:45 GMT
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dawn
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Post by dawn on Mar 2, 2018 18:27:00 GMT
I stand corrected, that's great news, thanks, Mason. However, I have just copied this from Lendy's website- All loans made through Lendy's platform are secured on UK property; however, your capital is at risk should a borrower default. Funds lent through a peer-to-peer website are not covered by the Financial Services Compensation Scheme (FSCS). Remember, past performance is not a guarantee of future performance. With all investment, capital is at risk. Please obtain independent advice if you are in any doubt as to whether this platform is suitable for you or if you require tax advice. Please review our full risk assessment here. Funds lent are not covered, but AIUI funds not lent that are sitting in the client account are covered (the client account in this case being a normal Barclays? account). Funds not drawndown should still be sitting in the client account so should be covered, again AIUI. Some-one please let me know if my understanding is not correct as I would really like to be certain about this for all the platforms I invest through.
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andy1
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Post by andy1 on Mar 2, 2018 18:28:06 GMT
So to clarify the FSCS thing... The FSCS covers all business conducted by firms authorised by the FCA www.fscs.org.uk/what-we-cover/products/ and the administrator was correct when he said that it did not apply now that COL's FCA approval had lapsed. He was also correct in saying, "you have never had the ability to make a claim for losses suffered as a result of any borrower becoming insolvent and unable to repay any loan you have made." Not much of a howler IMO. |
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Post by mrclondon on Mar 2, 2018 18:28:24 GMT
The short story is there were two loans on collateral , one a property and the other some land, both being quoted at specific value's , when i looked deeper into it, both the assets were owned by companies that belonged to curries brother, and both had been purchased at significantly lower prices (10x lower) than the valuations . I contacted collateral and challenged them, and they agreed to remove both from their platform. I could have revealed this on the forum, but they were a fairly new co, and i certainly did not want to start any unrest. It was enough for me to pull everything out of collateral and i never had any inclination to return, i just never trusted them after that. I *think* the two loans being referred to here are BL00001 and BL00002. For those with access to DD Central I documented some of the background to these two loans at the beginning of December ( DDC Thread). I included in that thread Peter's response on the forum concerning those loans. Note that the BL00001 land is that of the £1.7m loan that is for sale on Racefields that I posted about at the end of January in this thread and this DDC thread. EDIT: Again for those with DD Central access, a re-read of BL00045/BL00007's DDC Thread might be interesting with hindsight.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Mar 2, 2018 18:35:53 GMT
I stand corrected, that's great news, thanks, Mason. However, I have just copied this from Lendy's website- All loans made through Lendy's platform are secured on UK property; however, your capital is at risk should a borrower default. Funds lent through a peer-to-peer website are not covered by the Financial Services Compensation Scheme (FSCS). Remember, past performance is not a guarantee of future performance. With all investment, capital is at risk. Please obtain independent advice if you are in any doubt as to whether this platform is suitable for you or if you require tax advice. Please review our full risk assessment here. Funds lent are not covered, but AIUI funds not lent that are sitting in the client account are covered (the client account in this case being a normal Barclays? account). Funds not drawndown should still be sitting in the client account so should be covered, again AIUI. Some-one please let me know if my understanding is not correct as I would really like to be certain about this for all the platforms I invest through. That is what I have been told by a platform ... one that has demonstrated that it is pretty tight on complaince & regulation. Edit: Think I need to clarify this slightly - the funds are protected by FSCS if the bank goes tits up, if the platform goes they are protected by the fact they are segregated and are not an asset of the platform.
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Post by Badly Drawn Stickman on Mar 2, 2018 18:51:56 GMT
Funds lent are not covered, but AIUI funds not lent that are sitting in the client account are covered (the client account in this case being a normal Barclays? account). Funds not drawndown should still be sitting in the client account so should be covered, again AIUI. Some-one please let me know if my understanding is not correct as I would really like to be certain about this for all the platforms I invest through. That is what I have been told by a platform ... one that has demonstrated that it is pretty tight on complaince & regulation. Just to further complicate. Would funds held in this account form part of an individuals £85000 protection?
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mason
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Post by mason on Mar 2, 2018 19:02:55 GMT
Funds lent are not covered, but AIUI funds not lent that are sitting in the client account are covered (the client account in this case being a normal Barclays? account). Funds not drawndown should still be sitting in the client account so should be covered, again AIUI. Some-one please let me know if my understanding is not correct as I would really like to be certain about this for all the platforms I invest through. Not sure this would apply to funds held by an unauthorised firm.
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mason
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Post by mason on Mar 2, 2018 19:04:48 GMT
That is what I have been told by a platform ... one that has demonstrated that it is pretty tight on complaince & regulation. Just to further complicate. Would funds held in this account form part of an individuals £85000 protection? Yes, if the bank itself became insolvent. The more likely scenario is fraud by the P2P firm, in which case, deposits held by the individual in a personal account with the same bank would not be at risk and therefore not form part of the £85k. - Edit: seems fraud by the P2P firm is not covered in the cash protection.
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Post by dualinvestor on Mar 2, 2018 19:08:20 GMT
That is what I have been told by a platform ... one that has demonstrated that it is pretty tight on complaince & regulation. Just to further complicate. Would funds held in this account form part of an individuals £85000 protection? Funds in a clients acount are covered up to £85000 mainly in case the bank they are in fails (as wold be your personal account) If a platform gas not put the money in its clients account you may not be covered. I have a gut feeling you would be though. In Collateral''s case if all the money from everyone is where it should be (ie in the clients account you will get it all back even if it is more than £85000. As for the £50,000 limit provided Collateral made the loan you will only get the money back if the loan repays ie the FSCS does not cover the underlying investment. As an anology if you had bought shares in Carrillion through a FSCS coveted broker you would not expect the FSCS to cover your loss
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