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 Jul 27, 2018 11:52:31 GMT
FCA have published their consultation document on review of P2P rules
Biggest thing is potential application of restricted investor rules to P2P loan platforms
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Jul 27, 2018 12:03:20 GMT
FCA have published their consultation document on review of P2P rules
Biggest thing is potential application of restricted investor rules to P2P loan platforms
Under "Potential and actual harms" they state " Price too high, or quality too low" - presumably that means the Valuation of the Asset Security? If so, does that mean we are at last finally punching through to these thickos?
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aju
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Post by aju on Jul 27, 2018 12:56:27 GMT
Very interesting read, it is a review and a set of proposals so what actually gets embedded will be very interesting.
I haven't read it all yet but there are some interesting things that seem to question advertising of rates and then not actually delivering. Whilst I'm sure zopa is complying with a lot of this there are quite a few people over on the Zopa forum who might suggest that Zopa real rates are not quite up to those that are advertised at any one time.
This document is also a much easier read than the main principles documents, unless its just me who is finding many of the FCA docs unreadable.
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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 Jul 27, 2018 13:25:51 GMT
FCA have published their consultation document on review of P2P rules
Biggest thing is potential application of restricted investor rules to P2P loan platforms
Under "Potential and actual harms" they state " Price too high, or quality too low" - presumably that means the Valuation of the Asset Security? If so, does that mean we are at last finally punching through to these thickos? If you read section 5 there are lot of proposals on risk assessment & info provision. There are bits that clearly relate to Collateral situation and Lendy. Contingency funds for example 4.66 onwards.
From a skim read it does indeed seem a valuable consultation doc.
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archie
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Post by archie on Jul 27, 2018 13:34:16 GMT
The platform manual (5.6) would certainly have helped with Collateral.
Restricted investor rules don't really make a difference as nobody checks whether you're telling the truth.
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registerme
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Post by registerme on Jul 27, 2018 13:48:03 GMT
"These new rules focus particularly on credit risk assessment, risk management and fair valuation practices".
Somebody has actually been paying attention.
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Monetus
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Post by Monetus on Jul 27, 2018 13:56:36 GMT
This is going to be some fun Friday afternoon reading.
I'm pleased to see that the FCA is at least taking a deeper look into the sector. It's most certainly necessary.
Will be interesting to see if these words turn into action.
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registerme
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Post by registerme on Jul 27, 2018 14:23:39 GMT
"We are also proposing to define what constitutes default for the purposes of producing the outcomes statement using the definition in the Capital Requirements Regulation35 to ensure consistency across platforms. Under this definition, a loan would have defaulted when the borrower is past the contractual payment due date by more than 90 days, or 180 days for property loans".
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registerme
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Post by registerme on Jul 27, 2018 14:29:32 GMT
OK, I've finished reading it. That's one hell of a (imho welcome) wake up call for the entire industry. Some platforms are going to be..... hhhmmm.... "inconvenienced"  . |
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ozboy
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Post by ozboy on Jul 27, 2018 14:39:35 GMT
I do hope they now actually understand how ABP2P "works". Took them long enough if so.  |
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Greenwood2
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Post by Greenwood2 on Jul 27, 2018 14:55:45 GMT
From a quick skim I think it should be compulsory reading for all lenders, it spells out many risks we might not fully understand we are taking. Some we have all been discussing, but some things I didn't even know I didn't know...
I must read it more thoroughly.
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cb25
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Post by cb25 on Jul 27, 2018 15:19:07 GMT
" We are also proposing to define what constitutes default for the purposes of producing the outcomes statement using the definition in the Capital Requirements Regulation35 to ensure consistency across platforms. Under this definition, a loan would have defaulted when the borrower is past the contractual payment due date by more than 90 days, or 180 days for property loans". But would it mean that Platforms had to take positive steps to recover the money after marking the loan as Defaulted ?
I'm thinking of loans like AC's infamous loan #227 - was already 6 months late when AC allowed the Borrower to propose a vote granting them a 6-month interest free extension. To which the majority of Lenders unbelievably agreed !. The Loan is technically in 'default' but anybody's guess when AC might make a move to get the money repaid.
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r00lish67
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Post by r00lish67 on Jul 27, 2018 15:28:54 GMT
I found the conflict of interest section quite revealing:
"Other examples we have seen include:
platforms that allow staff or family members to transact on the secondary market,
creating a risk that they have access to information that is not available to all
investors which may benefit them
• platforms (sometimes through parent companies) that hold ‘skin in the game’ (ie
they buy a part of the loans they help originate). Even though this can lead to a better
standard of due diligence, it can also lead to conflicts of interest if they are able to
use the secondary market to sell out early (possibly based on greater access to
information), rather than holding to maturity
• platforms whose directors have presented loans for connected businesses but have
not declared these connections to investors
• the transfer of loans from one client to another"
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ozboy
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Post by ozboy on Jul 27, 2018 15:31:31 GMT
Despite the Apologists, Sympathisers & Shills it would seem that those who did indeed get off their backsides and Complain to The FCA may have actually had an effect and we may get some sort of a result.
Of course all aforementioned Apologists, Sympathisers & Shills will also benefit from this as well, despite their seemingly negative attitudes and possible attempts at dissuasion from any Complaining action.
Hopefully we will soon no longer have to put up with the lies & deceit and the "That's just the way it is" piss poor attitude.
Just shows what can be achieved if you actually DO something and Complain, and I thank you all my Fellow Investors.
One Happy OzBoy.
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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 Jul 27, 2018 15:34:12 GMT
" We are also proposing to define what constitutes default for the purposes of producing the outcomes statement using the definition in the Capital Requirements Regulation35 to ensure consistency across platforms. Under this definition, a loan would have defaulted when the borrower is past the contractual payment due date by more than 90 days, or 180 days for property loans". But would it mean that Platforms had to take positive steps to recover the money after marking the loan as Defaulted ?
I'm thinking of loans like AC's infamous loan #227 - was already 6 months late when AC allowed the Borrower to propose a vote granting them a 6-month interest free extension. To which the majority of Lenders unbelievably agreed !. The Loan is technically in 'default' but anybody's guess when AC might make a move to get the money repaid.
Actually not only is it in default, it's in recovery but lenders voted for a solvent recovery rather than risk a potentially large haircut. Of course a grade one winter may follow the hippy summer.
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