p2pmark
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Post by p2pmark on Apr 13, 2018 15:02:25 GMT
I've been trying to get a better understanding of what the FCA requirements are relating to p2p companies and what we call "living wills", and thought I'd share what I've found. As I understand it, the handbook " Interim Prudential Sourcebook for Investment Business" sets out the rules. Details on money that must be set aside is set out in section 12 ( particularly 12.2) of this, with the amount required being at least £50k but depending on the size of the loan book. There is additional information on wind down procedures in here, particularly sections 4.1.8A to 4.1.8E. Hope this is helpful. |
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Post by oldatheist on Apr 14, 2018 9:58:07 GMT
I don't see how a living will is much use for financial matters, you need a lasting power of attorney in place to deal with any temporary or permanent incapacity.
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pom
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Post by pom on Apr 14, 2018 18:28:23 GMT
I don't see how a living will is much use for financial matters, you need a lasting power of attorney in place to deal with any temporary or permanent incapacity. I can see why you might have jumped to that conclusion if you're deep in PoA-land but "living wills" actually are referring to the platforms arrangements if the sticky stuff hits the fan...
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shimself
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Post by shimself on Apr 27, 2018 20:42:35 GMT
There's not a whole lot of verbiage, so I thought I'd copy it here: Operators of electronic systems in relation to lending: arrangements to administer loans in the event of platform failure
SYSC 4.1.8A R 01/04/2014
RP
An operator of an electronic system in relation to lending must take reasonable steps to ensure that arrangements are in place to ensure that P2P agreements facilitated by it will continue to be managed and administered, in accordance with the contract terms, if at any time it ceases to carry on the activity of operating an electronic system in relation to lending.
SYSC 4.1.8B R 01/04/2014
RP
Any arrangements made under SYSC 4.1.8A R must be notified to lenders under P2P agreements:
(1)when such arrangements are made; or
(2)if later, when the lender first becomes a lender under a P2P agreement with that operator; or
(3)if the arrangements are changed, when that change is made; and
(4)if the arrangement involves another firm taking over the management and administration of P2P agreements if the operator ceases to operate the electronic system in relation to lending, the notification to lenders must inform lenders of the identity of the firm with which the arrangements have been made and how that firm will hold the lenders' money.
SYSC 4.1.8C G 01/04/2014
RP
Arrangements to ensure P2P agreements facilitated by the firm continue to be managed and administered may include:
(1)entering into an arrangement with another firm to take over the management and administration of P2P agreements if the operator ceases to operate the electronic system in relation to lending;
(2)holding sufficient collateral in a segregated account to cover the cost of management and administration while the loan book is wound down; or
(3)entering into an arrangement for another firm to act as guarantor for the P2P agreements which includes a legally enforceable arrangement to meet the costs of the guarantee in full; or
(4)managing the loan book in a way that ensures that income from P2P agreements facilitated by the firm is sufficient to cover the costs of managing and administering those agreements during the winding down process, taking into account the reduction of the loan pool and fee income from it.
SYSC 4.1. G 01/04/2014
RP
When designing its arrangements, a firm should take into account insolvency law to ensure that the insolvency of the firm does not prejudice the operation of arrangements that the firm has put in place.And it seems to me then that we are entitled to know who the living will operator is for each of our platforms. I'll ask a few operators. |
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G 01/04/2014