michaelc
Member of DD Central
Say No To T.D.S.
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Post by michaelc on Apr 11, 2018 14:08:33 GMT
This might seem a bit dry to some but a concern for me in my quest to ensure my money is as safe as can be whilst its in a "client account".
It appears to be the case that certain lending is not a regulated activity meaning that certain platforms don't actually need FCA regulation. For example, bridging finance isn't regulated. However, even if a platform doesn't do any regulated lending, many of the lenders are what I think the FCA would class as consumer investors. Is it not a regulated activity taking cash from consumer investors and putting it into a client account?
Waters are further muddied when you consider a company might be FCA authorised for some of its activity but not all. If a company does both regulated consumer lending and also bridging finance, is that company regulated for all its activity including the client account for the bridging part of the business?
Related is, is it actually possible to have a client account without FCA approval? I mean you can segregate funds as much as you want, but what protects them from any future administrator, receiver or liquidator if they don't have special status granted by the FCA?
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Post by justuslee on Apr 11, 2018 14:33:08 GMT
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dandy
Posts: 427
Likes: 341
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Post by dandy on Apr 11, 2018 14:50:01 GMT
This might seem a bit dry to some but a concern for me in my quest to ensure my money is as safe as can be whilst its in a "client account". It appears to be the case that certain lending is not a regulated activity meaning that certain platforms don't actually need FCA regulation. For example, bridging finance isn't regulated. However, even if a platform doesn't do any regulated lending, many of the lenders are what I think the FCA would class as consumer investors. Is it not a regulated activity taking cash from consumer investors and putting it into a client account? Waters are further muddied when you consider a company might be FCA authorised for some of its activity but not all. If a company does both regulated consumer lending and also bridging finance, is that company regulated for all its activity including the client account for the bridging part of the business? Related is, is it actually possible to have a client account without FCA approval? I mean you can segregate funds as much as you want, but what protects them from any future administrator, receiver or liquidator if they don't have special status granted by the FCA? Unfortunately I do not know the answers to your very good questions. However I would assume that there is "Client Money" (protected by FCA CASS rules) and then there is 'client money' which is not so protected - but just stated to be held for the client, by the company.
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Post by justuslee on Apr 11, 2018 15:02:35 GMT
Hi dandy that's a very good analogy. |
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