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Post by RateSetter on Nov 21, 2019 9:44:59 GMT
Good morning,
The functionality to view the options is now live in the member area. You can see the options by logging in, selecting "Account Settings" from the options at the top of the screen and clicking the pencil icon next to the "Classification" heading.
Thank you.
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Post by propman on Nov 21, 2019 9:55:10 GMT
Good morning. We’d like to clear up any confusion on this. The definition of a self-certified sophisticated P2P investor has been provided by the FCA. For anyone who would like the full technical detail: The FCA has inserted a new provision into the existing COBS 4.7.9 rule which modifies the declarations for certified High Net Worth investors, certified sophisticated investors and self-certified sophisticated investors. COBS 4 can be found here. The new provision will be COBS 4.7.9(2)(b) and it replaces references to ‘unlisted company’ with ‘P2P agreement or P2P portfolio’. COBS 4.7.9(2)(b) says: “ in the statement in COBS 4.12.8R, the reference to “unlisted company” must be replaced with a reference to “P2P agreement or P2P portfolio”;” Therefore point (b) in the declaration for self-certified sophisticated investors in the context of P2P is as follows: “ I have made more than one investment in a P2P agreement or P2P portfolio in the two years prior to the date below”. The new provision - COBS 4.7.9(2)(b) - is set out on page 62 of the FCA’s Policy Statement PS19/14 (the document which sets out all the regulatory changes for the P2P sector) which can be found here. Thanks for this, it's not an approach I agree with but I understand you are hamstrung by the wisdom of the FCA. To me using the terms 'sophisticated', 'restricted' etc. are totally misleading and not useful, but I blame the FCA for this, I have no real idea what these terms mean. Maybe some sort of quiz or scenario questions would be much better e.g. 'if a platform fails, most of the loans you thought were secured turns out not to be, all the funds frozen, the ring-fencing you thought your funds had up in smoke and the FCA wipes their hands of it, will you feel comfortable having lost 50% of your life savings' (slight tongue in cheek but based on FS a pretty valid question!). I still have a fundamental problem with the Ratesetter questions in that it requires somebody to confirm that they have less than 10% of their assets in p2p investments to certify as restricted. I see that the FCA handbook only requires restricted investors to certify that they will not invest more than 10% of their assets in p2p. P2P sites are supposed to risk assess customers based on their self-assessment answers. Huge question mark for me is how therefore should I answer the question if I have more than 10% of assets in p2p, but don't feel I am sophisticated. I am forced to not answer 'restricted' but I could be the very type of person that these rules were meant to help. I am not a lawyer, but my understanding is that in law a word only caries its "normal" meaning if it isn't specifically defined. "Sophisticated" is defined as above so you are sophisticated if you meet the current test for these purposes. There is no provision in Common law or otherwise to disapply confusing regulations or law!
It was stated in both the consultation and the subsequent guidance notes that the intention was only to restrict new investors NOT the existing ones, so a grandfathering provision for existing P2P investors makes sense. As new investors have to pass through the gateway this might have made a useful restriction. However, as drafted, it seems to me that the "<10% in next 2 years" requirement is essential to make this work and I would have thought wording to clarify that this should remain to overide the "sophisticated Investor" qualification purely from investments made during this 2 year period. Otherwise anyone can sign up to 2 P2Ps as restricted, then immediately reregister as sophisticated and thereby lose the restriction.
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aju
Member of DD Central
Posts: 3,486
Likes: 920
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Post by aju on Nov 21, 2019 15:59:17 GMT
Good morning, The functionality to view the options is now live in the member area. You can see the options by logging in, selecting "Account Settings" from the options at the top of the screen and clicking the pencil icon next to the "Classification" heading. Thank you. thanks RateSetter , it's back up now for me. I guess the lesson learned is to check it before claiming it's working but hey none of us are infallible. I thought it was me until i checked 4 separate browsers to be certain it wasn't my adblockers or other extensions causing issues on my end!.
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Post by bikeman on Dec 5, 2019 14:21:45 GMT
Good morning, The functionality to view the options is now live in the member area. You can see the options by logging in, selecting "Account Settings" from the options at the top of the screen and clicking the pencil icon next to the "Classification" heading. Thank you. Why are Ratesetter expecting investors to categorise themselves without providing an explanation of each category of investor?
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aju
Member of DD Central
Posts: 3,486
Likes: 920
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Post by aju on Dec 5, 2019 14:30:24 GMT
Good morning, The functionality to view the options is now live in the member area. You can see the options by logging in, selecting "Account Settings" from the options at the top of the screen and clicking the pencil icon next to the "Classification" heading. Thank you. Why are Ratesetter expecting investors to categorise themselves without providing an explanation of each category of investor? They are when I click on the options, you do have to click one to see the text associated. I just checked it myself and got this There are 4 different options and each one has relevant associated text. I think they follow the latest FCA guidelines but things may have changed further since I last looked.
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