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Post by wiseclerk on Feb 2, 2019 21:58:45 GMT
FCA decision from Dec. 2018 on Mintos application to operate an electronic system in relation to lending (Article 36H RAO)
Has no impact on the current operation of the platform but whatever plans Mintos had with this application they can't pursue that scenario right now any further.
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Post by extremis on Feb 3, 2019 17:36:38 GMT
This is certainly bad news. P2p lending is a (very) high risk investment and regulation could be used to somehow mitigate this risk. I have read FCA's final report and it looks like Mintos has not taken all the appropriate actions to comply with FCA rules. Since those rules are intended to protect us (investors) in case things go south, am i correct to assume that investing in Mintos carries more risk than investing in other FCA regulated platforms?
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p2pmark
Member of DD Central
Posts: 217 
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Post by p2pmark on Feb 3, 2019 19:12:04 GMT
This is certainly bad news. P2p lending is a (very) high risk investment and regulation could be used to somehow mitigate this risk. I have read FCA's final report and it looks like Mintos has not taken all the appropriate actions to comply with FCA rules. Since those rules are intended to protect us (investors) in case things go south, am i correct to assume that investing in Mintos carries more risk than investing in other FCA regulated platforms? Other things equal, yes, and it has always been thus. Further, my understanding is that losses on Mintos also can't be offset against tax because they're not regulated. Grateful if somebody more knowledgeable than me could confirm or otherwise. Having said that I think - relative to other sites - the 12% loans themselves are less risky on Mintos than elsewhere. Plus there's very little work to do to diversify.
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Post by Proptechfish on Feb 3, 2019 19:29:26 GMT
I can understand why Mintos are having problems with a UK regulator. Mintos are are a loan aggregator that work with about 40 loan originators across 25 or so different territories. Trying to put in place the contingency administration process as per FCA regulatory requirement itself would be incredibly complicated and onerous. As for it being higher risk it depends how you view it, yes it's non FCA regulated but the UK is not it's main market. I lend on Mintos through loans offering buy backs only so I have never lost a penny of capital to date, however when you factor in the volatility of the exchange rate (GDP/EURO) my Mintos holdings can go from a stand out performer within my portfolio one month to a near wipe out of profit the next month and then back again.
It's for those reasons I don't review Mintos on my blog, there's just too many moving parts. Personally I would find it a bit strange if it was UK regulated given it's wide territorial spread.
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Post by southseacompany on Feb 4, 2019 7:41:09 GMT
when you factor in the volatility of the exchange rate my Mintos holdings can go from a stand out performer within my portfolio one month to a near wipe out of profit the next month and then back again. If you consider the currency volatility a problem, you could eliminate it by having an equivalent currency hedge. You could even do this via a simple method that doesn't need tax reporting (in the UK) by using a spread betting provider.
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Post by wiseclerk on Feb 11, 2019 10:46:15 GMT
Follow up with statements of the Mintos CEO
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