bigfoot12
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Post by bigfoot12 on Jun 4, 2019 12:15:55 GMT
There is no such restriction on some equally risky investments. I agree, but I think that the FCA is worried that people are confusing P2P with savings accounts, rather than piling into Thomas Cook shares.
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Monetus
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Post by Monetus on Jun 4, 2019 12:17:13 GMT
Too little, too late for investors in Lendy and Collateral?
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alanh
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Post by alanh on Jun 4, 2019 12:17:28 GMT
It seems to me the 10% is totally unenforceable. Firstly it looks like you can self certify, but if thats not the case who polices it? Do they do a complete audit of you entire net worth?....obviously not.
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Post by Deleted on Jun 4, 2019 12:19:38 GMT
It seems to me the 10% is totally unenforceable. Firstly it looks like you can self certify, but if thats not the case who polices it? Do they do a complete audit of you entire net worth?....obviously not. It's not supposed to be 'enforceable', obviously if people can self-certify. Its designed to make unsophisticated investors stop and think about risk and diversification, without acting like a nanny state and preventing people who really want to invest more.
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iRobot
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Post by iRobot on Jun 4, 2019 12:20:31 GMT
There is no such restriction on some equally risky investments. I agree, but I think that the FCA is worried that people are confusing P2P with savings accounts, rather than piling into Thomas Cook shares. I'd give you two likes if I could! 
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carolus
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Post by carolus on Jun 4, 2019 12:25:38 GMT
It seems to me the 10% is totally unenforceable. Firstly it looks like you can self certify, but if thats not the case who polices it? Do they do a complete audit of you entire net worth?....obviously not. It's not supposed to be 'enforceable', obviously if people can self-certify. Its designed to make unsophisticated investors stop and think about risk and diversification, without acting like a nanny state and preventing people who really want to invest more. Yes, this is about right IMO. It's about there being much clearer information around risk disclosure etc.
Although I note that the full document includes:
Which would go a bit further (and be more in line with the risk questionnaires on e.g. stocks and shares platforms).
And there's then a further long list of aspects that platforms are supposed to assess customers' understanding of (see p19)
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Post by Deleted on Jun 4, 2019 12:44:28 GMT
tbh, since the P2P sector is so varied in terms of risk, investments etc, I don't think a 10% sector limit makes much sense at all.
I'd prefer a lower (eg 5% or less) per-platform limit. That's the limit I use anyway.
And I use a limit of less than 1% per-loan and per-borrower.
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invester
P2P Blogger
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Post by invester on Jun 4, 2019 16:44:44 GMT
Is the 10% per platform or aggregate holdings?
It could be quite roughly policed I suppose if platforms were made to collect some type of evidence, but I can't see many wanting to do it.
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aju
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Post by aju on Jun 4, 2019 16:53:49 GMT
Whilst I agree with most of this approach I'm guessing with all the additional work in some platforms their website are gonna go even further downhill perhaps. That's assuming they have any further to go down to that is.
I'm only in Zopa and RS and RS apart from its obtuse colouring book style is pretty good compared to the abominable incompetence of Zopa's system some days. (today it said I was using the wrong PW and userid just because the "Auth" platform fellover for a while...)
I'm happy though by the new rules to be deemed "sophisticated" it's taken a long while. Not bad for an ex secMod schooled council house chappy from the wrong side of the Cambridge tracks. I was always good at "reading" newspapers and magazines though.
I must advise Mrs Aju, a grammar school girly, of my newfound sophistication too! On second thoughts nah, she'd only add a load of punctuation and big words into my verbiage.
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aju
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Post by aju on Jun 4, 2019 16:59:16 GMT
Is the 10% per platform or aggregate holdings? It could be quite roughly policed I suppose if platforms were made to collect some type of evidence, but I can't see many wanting to do it. If it's anything like the policing of ISA 9000 in the 90's then that won't actually happen and will rely on the likes of us complaining to a platform, waiting 8 weeks for a unhelpful final letter and then the FCA taking months to resolve the issue.
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macq
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Post by macq on Jun 4, 2019 17:33:06 GMT
would agree with others that tougher regs are required but the question of how its enforced keeps coming up.Its only a personal opinion but i wonder how many new people will be coming into p2p over the next few years and affected by the rules.Following the news and bad press over LC&F and Lendy recently it seems hard to see people who have been out over the last decade rushing to sign up now
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aju
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Post by aju on Jun 4, 2019 17:35:43 GMT
would agree with others that tougher regs are required but the question of how its enforced keeps coming up.Its only a personal opinion but i wonder how many new people will be coming into p2p over the next few years and affected by the rules.Following the news and bad press over LC&F and Lendy recently it seems hard to see people who have been out over the last decade rushing to sign up now Brexit is still unresolved as well so I wouldn't hold my breath on the number of new people coming in over the next 6 months or so but what do I know?
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Post by df on Jun 4, 2019 17:56:04 GMT
www.moneywise.co.uk/news/2019-06-04/financial-watchdog-imposes-restrictions-peer-to-peer-investing?utm_source=IBMW&utm_medium=email&utm_campaign=Mailing%20Name%20(40)%20(1)&utm_content=Good intentions, but how could they possibly implement this? "Retail investors new to the sector will be restricted to having just 10% of their investible assets in P2P loans" - I recall a tick box exercise on Lendy website. 10% was one of the options to tick, but anyone can tick anything. To police this platforms will require full access to people's personal finance data. "requirement for P2P providers to assess investors’ knowledge of the P2P before they invest" - I filled in one of these questionnaires (can't remember what platform). I don't see how the knowledge can be assessed through on-line questionnaire. One can tick the box confirming that they understand the risk involved (we do it on ABL when purchasing loan part, for example). "rules for marketing, requiring providers to clearly spell out the potential risks involved" - all FCA regulated platforms display risk warning. This is already in place. I would've liked to see measures restricting platforms from advertising unrealistic LTVs and stop them displaying GDVs as a headline figure. Or why not introducing a robust authorisation procedure? FCA authorised Ly when it was already obvious that the firm is not managing their loan book properly. Looks as if they are trying to protect investors from the wrong end. It's p2p firms who should be vetted, not retail investors.
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Post by df on Jun 4, 2019 18:30:37 GMT
Is the 10% per platform or aggregate holdings? It could be quite roughly policed I suppose if platforms were made to collect some type of evidence, but I can't see many wanting to do it. It is 10% of your available cash. For example, if you have £100 today, you are allowed to invest a tenner. If you spend £10 tomorrow, you'll have to reduce your p2p holding by 90p...
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Post by Ace on Jun 4, 2019 18:34:11 GMT
Is the 10% per platform or aggregate holdings? It could be quite roughly policed I suppose if platforms were made to collect some type of evidence, but I can't see many wanting to do it. It is 10% of your available cash. For example, if you have £100 today, you are allowed to invest a tenner. If you spend £10 tomorrow, you'll have to reduce your p2p holding by 90p... Err... I think you mean reduce by £1!
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