nummo
Member of DD Central
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Post by nummo on Jul 25, 2019 15:32:59 GMT
@crowdproperty Looking more deeply into your platform at the moment to decide if I want to commit more cash. I note you have a Standby Service Provider in place if the platform defaults but cannot find much further information about this. Could you advise which company is in place for this and some other questions: - Is the standby provider triggered automatically in the case of platform failure?
- How do they calculate their fees for running the loan book down or is this already set out in your agreement?
- Do they have some kind of access to your IT systems, databases etc already or does it rely on the platform making this available?
Trying to get a deeper understanding of the whole process in the case of platform failure, so anything else you can tell us would be appreciated. Thanks. |
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Post by CrowdProperty Representative on Jul 29, 2019 11:54:50 GMT
Hi Nummo
Many thanks for your insightful questions.
Our contracted backup service provider is Smith & Williamson (‘S&W’), a major UK accountancy and financial services business. We have worked closely with them and have a comprehensive wind down plan that they are fully aligned to. They are also our accountants, so know the business well. They have a strong insolvency and recoveries practice and work with other P2P lenders too.
In the unlikely event that CrowdProperty goes into administration, S&W would be instructed to initiate and complete clearly articulated wind down procedures. It is typical practice that a subset of the existing staff base, under S&W’s supervision, oversight and governance, would carry out wind-down functions across the property, technology, regulatory and administration teams, ensuring both operational knowledge and technical property expertise is retained through the wind down period. Professional fees would be charged on a time and materials basis and S&W has been confirmed that the way our platform takes partial remuneration at the end of the loan term provides ample cashflow cover for an orderly and professional wind down with ample resourcing and oversight. All costs in such a scenario have been thoroughly modelled (including S&W fees) and all procedures, including all system access rights and requirements have been thoroughly documented. The wind down plan is reviewed on a regular basis to ensure that it is very much a ‘living’ document.
Best regards,
Mike Bristow
CEO & Co-Founder
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nummo
Member of DD Central
Posts: 50
Likes: 12
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Post by nummo on Jul 29, 2019 12:22:50 GMT
Hi Nummo Many thanks for your insightful questions. Our contracted backup service provider is Smith & Williamson (‘S&W’), a major UK accountancy and financial services business. We have worked closely with them and have a comprehensive wind down plan that they are fully aligned to. They are also our accountants, so know the business well. They have a strong insolvency and recoveries practice and work with other P2P lenders too. In the unlikely event that CrowdProperty goes into administration, S&W would be instructed to initiate and complete clearly articulated wind down procedures. It is typical practice that a subset of the existing staff base, under S&W’s supervision, oversight and governance, would carry out wind-down functions across the property, technology, regulatory and administration teams, ensuring both operational knowledge and technical property expertise is retained through the wind down period. Professional fees would be charged on a time and materials basis and S&W has been confirmed that the way our platform takes partial remuneration at the end of the loan term provides ample cashflow cover for an orderly and professional wind down with ample resourcing and oversight. All costs in such a scenario have been thoroughly modelled (including S&W fees) and all procedures, including all system access rights and requirements have been thoroughly documented. The wind down plan is reviewed on a regular basis to ensure that it is very much a ‘living’ document. Best regards, Mike Bristow CEO & Co-Founder @crowdlend Thanks Mike, very encouraging answer and covers all the relevant points. Great to see you have modeled and considered exactly how this would work in practice. Been very impressed with your platform so far and looking to forward to investing more with your company.
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