ptr120
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Post by ptr120 on Apr 24, 2019 12:46:42 GMT
www.p2pfinancenews.co.uk/2019/04/24/fca-register-confirms-restrictions-on-lendys-activities/the firm must not “in any way dispose of, deal with or diminish the value of any of its assets and must not in any way release client money without in either case the prior written consent of the authority.” So even withdrawing interest on any loans that are still paying it will need approval of the FCA. Imagine how long that is going to take! Probably explains the alleged 'banking problems' they have claimed to have.
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Post by brightspark on Apr 24, 2019 13:04:05 GMT
It is a reason but not an explanation. The implied explanation is that without such a stop on activities that Lendy assets would continue to diminish without any business controls on their disposal. It is all very well as far as it goes but I would appreciate an explanation from the FCA as to to the reasons it felt it was necessary to take such a draconian step. It gives Lendy a reason for being dilatory in repaying money to investors when borrowers repay to them. Lendy must already be totting up the extra interest they will earn on trapped investments. If the FCA felt that the situation was this serious then our old friends the Administrators should be in there. i am sure the FCA know a firm or two to line up for the job.
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Greenwood2
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Post by Greenwood2 on Apr 24, 2019 13:23:06 GMT
It is a reason but not an explanation. The implied explanation is that without such a stop on activities that Lendy assets would continue to diminish without any business controls on their disposal. It is all very well as far as it goes but I would appreciate an explanation from the FCA as to to the reasons it felt it was necessary to take such a draconian step. It gives Lendy a reason for being dilatory in repaying money to investors when borrowers repay to them. Lendy must already be totting up the extra interest they will earn on trapped investments. If the FCA felt that the situation was this serious then our old friends the Administrators should be in there. i am sure the FCA know a firm or two to line up for the job. And that went so well last time... I would hope it would be a last resort.
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sarahcount
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Post by sarahcount on Apr 24, 2019 13:24:16 GMT
It is a reason but not an explanation. The implied explanation is that without such a stop on activities that Lendy assets would continue to diminish without any business controls on their disposal. It is all very well as far as it goes but I would appreciate an explanation from the FCA as to to the reasons it felt it was necessary to take such a draconian step. It gives Lendy a reason for being dilatory in repaying money to investors when borrowers repay to them. Lendy must already be totting up the extra interest they will earn on trapped investments. If the FCA felt that the situation was this serious then our old friends the Administrators should be in there. i am sure the FCA know a firm or two to line up for the job. Not sure I would use the word friends when describing Administrators.
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Post by picanto on Apr 24, 2019 13:25:29 GMT
How can the FCA stop Lendy from allowing us to withdraw our funds? It's our money and we should have access to it if it's not tied up in a loan.
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ptr120
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Post by ptr120 on Apr 24, 2019 13:32:57 GMT
I've found out that the restriction was put in place on 16 April due to actual or potential legal action by a borrower. I assume this to be the London loan, but that doesn't explain why the restriction was pit in place only on the 16th April, nor why Lendy wasn't obliged to inform us that this restriction has been put in place.
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sl75
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Post by sl75 on Apr 24, 2019 13:33:17 GMT
How can the FCA stop Lendy from allowing us to withdraw our funds? It's our money and we should have access to it if it's not tied up in a loan. I suspect that the restrictions for when they can "release client money" refers primarily to releasing it to themselves or to other parties besides the clients whose money it is...
e.g. when they take their "fee" for having had loan parts listed on the secondary market.
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Post by brightspark on Apr 24, 2019 14:07:03 GMT
How can the FCA stop Lendy from allowing us to withdraw our funds? It's our money and we should have access to it if it's not tied up in a loan. The FCA are requiring Lendy to obtain their approval before funds are released (to you). I can't imagine how in practice this will be achieved but I can see it causing a processing delay.
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Post by picanto on Apr 24, 2019 15:26:05 GMT
How can the FCA stop Lendy from allowing us to withdraw our funds? It's our money and we should have access to it if it's not tied up in a loan. The FCA are requiring Lendy to obtain their approval before funds are released (to you). I can't imagine how in practice this will be achieved but I can see it causing a processing delay. Hopefully not too long as another forum member in the other thread stated they withdrew funds and received them in their bank account the next day. I just find it ridiculous that Lendy need to obtain FCA approval for investors to withdraw their funds (if I've understood this correctly). Funds in your available account are held in a separate Barclays account and should have nothing to do with Lendy's financial position and therefore nothing to do with the FCA.
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Monetus
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Post by Monetus on Apr 24, 2019 15:58:26 GMT
I've found out that the restriction was put in place on 16 April due to actual or potential legal action by a borrower. What date did the "issues with our banking services" start?
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ilmoro
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Post by ilmoro on Apr 24, 2019 16:06:52 GMT
The FCA are requiring Lendy to obtain their approval before funds are released (to you). I can't imagine how in practice this will be achieved but I can see it causing a processing delay. Hopefully not too long as another forum member in the other thread stated they withdrew funds and received them in their bank account the next day. I just find it ridiculous that Lendy need to obtain FCA approval for investors to withdraw their funds (if I've understood this correctly). Funds in your available account are held in a separate Barclays account and should have nothing to do with Lendy's financial position and therefore nothing to do with the FCA. FCA is responsible for enforcing client money rules. I would assume they are ensuring that the client account controlled by Lendy isnt utilised for unauthorised purposes. Sounds exactly what the FCA should be doing.
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ilmoro
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Post by ilmoro on Apr 24, 2019 16:11:24 GMT
I've found out that the restriction was put in place on 16 April due to actual or potential legal action by a borrower. What date did the "issues with our banking services" start? Update was noted on the 17th.
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Monetus
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Post by Monetus on Apr 24, 2019 16:13:06 GMT
What date did the "issues with our banking services" start? Update was noted on the 17th. 
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nsinvestor
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Post by nsinvestor on Apr 24, 2019 17:41:42 GMT
There seems to be an assumption that 'client' means investor.
It could equally refer to the Borrowers and this could then be interpreted as the FCA needing to give permission before monies are advanced to a borrower client of Lendy.
That would be more rational if the FCA restriction is on asset growth
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Greenwood2
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Post by Greenwood2 on Apr 24, 2019 19:38:20 GMT
There seems to be an assumption that 'client' means investor. It could equally refer to the Borrowers and this could then be interpreted as the FCA needing to give permission before monies are advanced to a borrower client of Lendy. That would be more rational if the FCA restriction is on asset growth 'Requirements are rules placed on the firm that apply to all of the financial services activities that it can operate. The firm is the subject of an asset restriction The Authority has decided to impose with immediate effect a requirement on the Firm, under section 55L of the Act, that it: a) must not in any way dispose of, deal with or diminish the value of any of its assets; and b) must not in any way release client money without in either case the prior written consent of the Authority' Seems pretty draconian, but hopefully it is meant to be protecting client funds.
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