dandy
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Post by dandy on Aug 8, 2018 10:03:16 GMT
I think any potential ban on any investors investing in P2P is misguided. Yes, there should be tighter regulation of platforms and in particular the manner in which they market themselves. There is clearly much progress needed with that.
However to restrict P2P to classified investors will quite obviously have the following effect:
1. Investors will use non-regulated companies instead; or
2. Investors will self certify.
… whilst letting the FCA claim they are protecting novice investors, when they are not. Same old story of Wonga vs Loan sharks. FCA repeating the same mistakes and excepting different results. Insanity.
The answers are all Platform based - not investor based - which would just be an admission by FCA that they are unable to regulate this industry as it is beyond their abilities to keep platforms in line
Most of their other proposals do seem positive
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snowmobile
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Post by snowmobile on Aug 8, 2018 10:34:42 GMT
I think any potential ban on any investors investing in P2P is misguided. Yes, there should be tighter regulation of platforms and in particular the manner in which they market themselves. There is clearly much progress needed with that. However to restrict P2P to classified investors will quite obviously have the following effect: 1. Investors will use non-regulated companies instead; or 2. Investors will self certify. … whilst letting the FCA claim they are protecting novice investors, when they are not. Same old story of Wonga vs Loan sharks. FCA repeating the same mistakes and excepting different results. Insanity. The answers are all Platform based - not investor based - which would just be an admission by FCA that they are unable to regulate this industry as it is beyond their abilities to keep platforms in line Most of their other proposals do seem positive I agree. The FCA appear to be opting for the easy route for themselves by minimising the amount of regulation needed. They've obviously realised what a minefield P2P is and that they don't have the skills or resources to effectively regulate the platforms. It goes against everything Peer2Peer lending was supposed to be. The clue is in the name. Perhaps they should propose an alternative name for the sector at the same time.
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aju
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Post by aju on Aug 8, 2018 13:09:04 GMT
I think any potential ban on any investors investing in P2P is misguided. Yes, there should be tighter regulation of platforms and in particular the manner in which they market themselves. There is clearly much progress needed with that. However to restrict P2P to classified investors will quite obviously have the following effect: 1. Investors will use non-regulated companies instead; or 2. Investors will self certify. … whilst letting the FCA claim they are protecting novice investors, when they are not. Same old story of Wonga vs Loan sharks. FCA repeating the same mistakes and excepting different results. Insanity. The answers are all Platform based - not investor based - which would just be an admission by FCA that they are unable to regulate this industry as it is beyond their abilities to keep platforms in line Most of their other proposals do seem positive I agree. The FCA appear to be opting for the easy route for themselves by minimising the amount of regulation needed. They've obviously realised what a minefield P2P is and that they don't have the skills or resources to effectively regulate the platforms. It goes against everything Peer2Peer lending was supposed to be. The clue is in the name. Perhaps they should propose an alternative name for the sector at the same time. The clue was in the name of Zopa in the early days too if I remember correctly, perhaps we have all forgotten that ZOPA still stands for Zone of possible agreement. I'm not sure as an investor what I am agreeing to now that it's all automated and i have relatively little to agree to. That said I was never certain what the borrower was agreeing to in the old days either. One thing I have been realising lately is the spread in Zopa and others I'm assuming, the bit where they take their cut they have to be viable of course. I must pull my finger out and try and gauge what these Fees really are on my lent money - the bit that zopa keeps as part of my agreement but its very shrouded to most of us. I feel another spreadsheet analysis day coming on ... ;-) I do tend to agree that the FCA will probably opt for the easy route though after all unless they get more staff in the process then they will not really be able to police that much anyway. With the rates starting to rise I'm guessing if they go too to far too quickly then the Wild West could be reborn again to keep them very busy. Of course if the old brexit thingy ever gets resolved we could be in for some choppy times there as well, especially if it results in more rather than less deregulation etc.
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Post by albermarle on Aug 26, 2018 17:35:31 GMT
'The FCA has suggested that P2P lenders could be limited to sophisticated investors or high-net-worth individuals who are fully aware of the risk involved in P2P lending. The regulator has also proposed that all investors should be limited to investing a maximum of ten per cent of their net investible portfolio in P2P.'
I can't see how they would be able to enforce a limit, maybe they will simply suggest a sensible investment level, which would effectively make no difference.
The FCA have done the same thing with many other non mainstream investments like venture capital trusts over the years. Am sure the FCA can come up with some suitable and sensible guidelines that would work for p2p and would not be too onerous on the platforms. Reading some of the posts across this forum, i think it is needed. There are quite a few posters who have said they did not realise how risky p2p was and over invested in one way or another in indivual loans, accounts or platforms. I think the very light touch regulation of p2p was always going to get beefed up at some stage as it grows. I don't think it is sustainable that it has relatively little regulation compared with many other alternative investments. I recently invested in some bonds via an IFISA, where there is no live secondary market . I was asked the questions about being a sophisticated or registered investor with no more than 10% in difficult to realise securities etc Then I was asked about 5 simple questions with multi choice answers to make sure I really understood what I was investing in eg 'If this investments drops dramatically in value will you get compensation ?' Yes/Maybe/No .If you want to cash in the investment how long would that take . One hour/one day /maybe not possible at all etc . If you give the wrong answer it highlights the risks again . That could maybe be a good model for P2P ?
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ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Aug 26, 2018 17:52:41 GMT
The FCA are complete and utter Tossers re categorising as High Net Worth Individual, Sophisticated Investor, and all the other BS they shovel so well to ensure their own jobs and future.
The easiest, simplest and most effective thing they could do is to immediately weed out the sheer crookedness & dishonesty endemic in the P2P industry.
But they won't will they.
W****rs.
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aju
Member of DD Central
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Post by aju on Aug 26, 2018 22:30:08 GMT
The FCA are complete and utter Tossers re categorising as High Net Worth Individual, Sophisticated Investor, and all the other BS they shovel so well to ensure their own jobs and future. The easiest, simplest and most effective thing they could do is to immediately weed out the sheer crookedness & dishonesty endemic in the P2P industry. But they won't will they. W****rs. Well said ozboy, These people rumage round the edges, every now and again pop their heads up to satisfy a newspaper or a politician or two and then hunker back down in their bunkers and wait until the melee is all but over. When's the christmas party, hic...
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arby
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Post by arby on Aug 27, 2018 11:21:10 GMT
The FCA have done the same thing with many other non mainstream investments like venture capital trusts over the years. Am sure the FCA can come up with some suitable and sensible guidelines that would work for p2p and would not be too onerous on the platforms. Reading some of the posts across this forum, i think it is needed. There are quite a few posters who have said they did not realise how risky p2p was and over invested in one way or another in indivual loans, accounts or platforms. I think the very light touch regulation of p2p was always going to get beefed up at some stage as it grows. I don't think it is sustainable that it has relatively little regulation compared with many other alternative investments. I recently invested in some bonds via an IFISA, where there is no live secondary market . I was asked the questions about being a sophisticated or registered investor with no more than 10% in difficult to realise securities etc Then I was asked about 5 simple questions with multi choice answers to make sure I really understood what I was investing in eg 'If this investments drops dramatically in value will you get compensation ?' Yes/Maybe/No .If you want to cash in the investment how long would that take . One hour/one day /maybe not possible at all etc . If you give the wrong answer it highlights the risks again . That could maybe be a good model for P2P ? Not a bad idea; also a worked example that shows how a second charge on an asset can easily result in a 100% loss, even though the asset still exists and is worth something. Also running a scenario that showed if defaults went to the level of the last financial crisis, what sort of returns might be expected. Transparency upfront is good, both for us in our understanding, and for protecting against scurrilous compensation claims later.
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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 Sept 24, 2018 12:56:26 GMT
Altfi against restrictions
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