Post by nick on Dec 4, 2019 9:42:44 GMT
Just received by email:
"Dear Investor,
Changes to LandlordInvest’s Wind Down Plan (“WDP”).
Financial Conduct Authority (FCA) rules require that an operator of an electronic system in relation to lending, including LandlordInvest, must take reasonable steps to ensure that arrangements are in place to ensure that P2P agreements facilitated by the lending platform will continue to be managed and administered, in accordance with the contract terms, if at any time the lending platform ceases to carry on the activity of operating an electronic system in relation to lending (SYSC 4.1.8A R).
LandlordInvest has been using a back-up servicing provider, Street (UK) C.I.C. However, the back-up servicing agreement with Street (UK) C.I.C has now expired and Street (UK) C.I.C has stated that they are withdrawing from the provision of back-up servicing to focus on their core area of business.
We therefore have elected to in the event of the firm’s wind down, manage the wind down ourselves as we believe it would be of benefit to our customers given the size of the loan book, knowledge of the loans and other (SYSC 4.1.8C G).
At this time, given the size of the loan book it is more cost effective to manage any possible wind down ourselves. However, we remain in discussions with third parties who provide these services. We will review this situation on a bi-annual basis and should the circumstances change we may appoint another company to be responsible for any wind down.
As required by the FCA rules, we have carefully estimated the costs of a wind down and confirm that the loan book would generate sufficient revenues to cover the costs of a wind down. We also reserve the right to charge a special situations fee to cover the costs of a wind down by increasing the borrower servicing fee on active loans in the event of a wind down. The special situation’s fee would only be charged to cover the costs of a wind down, with no profit element attached.
Clause 16 of the Terms and Conditions for Lenders have been updated to reflect this new arrangement.
We understand that this notification might cause concern given the recent wind downs of other P2P platforms. However, please rest assured that we as of date of this email, have no intention to wind down our operations, and are making the notification as required by the FCA rules (SYSC 4.1.8B (R). This does not impact your experience of using and investing through LandlordInvest’s lending platform.
Please let us know if anything is unclear or if you require further clarification. If you have any queries please call us on 0207 406 1491, our lines are open from 9.30am to 5.30pm every working day, or email us at investor@landlordinvest.com.
"
"Dear Investor,
Changes to LandlordInvest’s Wind Down Plan (“WDP”).
Financial Conduct Authority (FCA) rules require that an operator of an electronic system in relation to lending, including LandlordInvest, must take reasonable steps to ensure that arrangements are in place to ensure that P2P agreements facilitated by the lending platform will continue to be managed and administered, in accordance with the contract terms, if at any time the lending platform ceases to carry on the activity of operating an electronic system in relation to lending (SYSC 4.1.8A R).
LandlordInvest has been using a back-up servicing provider, Street (UK) C.I.C. However, the back-up servicing agreement with Street (UK) C.I.C has now expired and Street (UK) C.I.C has stated that they are withdrawing from the provision of back-up servicing to focus on their core area of business.
We therefore have elected to in the event of the firm’s wind down, manage the wind down ourselves as we believe it would be of benefit to our customers given the size of the loan book, knowledge of the loans and other (SYSC 4.1.8C G).
At this time, given the size of the loan book it is more cost effective to manage any possible wind down ourselves. However, we remain in discussions with third parties who provide these services. We will review this situation on a bi-annual basis and should the circumstances change we may appoint another company to be responsible for any wind down.
As required by the FCA rules, we have carefully estimated the costs of a wind down and confirm that the loan book would generate sufficient revenues to cover the costs of a wind down. We also reserve the right to charge a special situations fee to cover the costs of a wind down by increasing the borrower servicing fee on active loans in the event of a wind down. The special situation’s fee would only be charged to cover the costs of a wind down, with no profit element attached.
Clause 16 of the Terms and Conditions for Lenders have been updated to reflect this new arrangement.
We understand that this notification might cause concern given the recent wind downs of other P2P platforms. However, please rest assured that we as of date of this email, have no intention to wind down our operations, and are making the notification as required by the FCA rules (SYSC 4.1.8B (R). This does not impact your experience of using and investing through LandlordInvest’s lending platform.
Please let us know if anything is unclear or if you require further clarification. If you have any queries please call us on 0207 406 1491, our lines are open from 9.30am to 5.30pm every working day, or email us at investor@landlordinvest.com.
"