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Post by pds50k on Mar 16, 2020 20:04:06 GMT
Email from Growth Street:
Dear Investor,
Due to the unprecedented impact that the novel coronavirus (COVID-19) has had on our industry and the wider economy, we have taken the difficult decision to initiate a Liquidity Event (under clause 7.3 of the Investor Terms), whereby investors will be unable to cancel outstanding lend orders or remove matched funds for up to 90 days. This has been driven by an unprecedented volume of investors requesting withdrawals rather than by any significant change in the quality of the loan book. By taking this step, we are ensuring that we can appropriately support our borrowers through this uncertainty thereby mitigating any potential adverse credit events that could lead to borrower defaults and thereby protecting your capital and investment. It is worth noting that we anticipate that this move will be replicated across the peer-to-peer sector.
etc...
Time to get money out of other platforms?
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Post by df on Mar 16, 2020 20:24:57 GMT
Email from Growth Street:
Dear Investor,
Due to the unprecedented impact that the novel coronavirus (COVID-19) has had on our industry and the wider economy, we have taken the difficult decision to initiate a Liquidity Event (under clause 7.3 of the Investor Terms), whereby investors will be unable to cancel outstanding lend orders or remove matched funds for up to 90 days. This has been driven by an unprecedented volume of investors requesting withdrawals rather than by any significant change in the quality of the loan book. By taking this step, we are ensuring that we can appropriately support our borrowers through this uncertainty thereby mitigating any potential adverse credit events that could lead to borrower defaults and thereby protecting your capital and investment. It is worth noting that we anticipate that this move will be replicated across the peer-to-peer sector.
etc...
Time to get money out of other platforms?
Depends on how scared you are and what the exit facilities are available  AC has already done it a couple of days ago... Plenty of bargains on ABL... some platforms are in hands of administrators or winding down... etc. I think at this stage I'm just going to stay put and see what happens next - tired of panicking.
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Greenwood2
Member of DD Central
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Post by Greenwood2 on Mar 16, 2020 20:53:35 GMT
Email from Growth Street:
Dear Investor,
Due to the unprecedented impact that the novel coronavirus (COVID-19) has had on our industry and the wider economy, we have taken the difficult decision to initiate a Liquidity Event (under clause 7.3 of the Investor Terms), whereby investors will be unable to cancel outstanding lend orders or remove matched funds for up to 90 days. This has been driven by an unprecedented volume of investors requesting withdrawals rather than by any significant change in the quality of the loan book. By taking this step, we are ensuring that we can appropriately support our borrowers through this uncertainty thereby mitigating any potential adverse credit events that could lead to borrower defaults and thereby protecting your capital and investment. It is worth noting that we anticipate that this move will be replicated across the peer-to-peer sector.
etc...
Time to get money out of other platforms?
Depends on how scared you are and what the exit facilities are available AC has already done it a couple of days ago... Plenty of bargains on ABL... some platforms are in hands of administrators or winding down... etc. I think at this stage I'm just going to stay put and see what happens next - tired of panicking. Another platform doing this, if you trust the platform and you don't need the money fine, if not a problem. If you really need the money a real problem.
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IFISAcava
Member of DD Central
Posts: 3,692
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Post by IFISAcava on Mar 16, 2020 20:56:41 GMT
Depends on how scared you are and what the exit facilities are available AC has already done it a couple of days ago... Plenty of bargains on ABL... some platforms are in hands of administrators or winding down... etc. I think at this stage I'm just going to stay put and see what happens next - tired of panicking. Another platform doing this, if you trust the platform and you don't need the money fine, if not a problem. If you really need the money a real problem. If you really needed the money it should have been nowhere near P2P though.
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Post by df on Mar 16, 2020 21:27:25 GMT
Depends on how scared you are and what the exit facilities are available AC has already done it a couple of days ago... Plenty of bargains on ABL... some platforms are in hands of administrators or winding down... etc. I think at this stage I'm just going to stay put and see what happens next - tired of panicking. Another platform doing this, if you trust the platform and you don't need the money fine, if not a problem. If you really need the money a real problem. In the past year my p2p has been steadily under 27% of my funds, the rest of cash is in FSCS. I wouldn't put money I rely on into any investment.
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delboy
Member of DD Central
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Post by delboy on Mar 16, 2020 22:22:40 GMT
I've just read that one of the restrictions to the platform relates to repaid funds. Lenders are now unable to change their account settings to stop funds from being re-invested into new loans - that seems very unreasonable to me. I accept the control the platform has over lent funds, but cash that is repaid to me is surely mine to decide what to do with. Fair enough restricting withdrawals, but literally mandating me to lend my cash in new loans against my will seems like a completely unfair (perhaps even unlawful) condition.
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alender
Member of DD Central
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Post by alender on Mar 16, 2020 22:56:28 GMT
I have checked my account and the setting to move interest to the Holding Account has been changed from Reinvest principal only to Reinvest principal and interest , I tried to change it back and get
"Changes to your reinvestment settings are temporarily suspended"
I tried to withdraw the small amount of money in my Holding account but get
"Due to coronavirus, we are no longer in normal market conditions. Withdrawals of funds from the Growth Street exchange are currently suspended. Read more."
I tried to cancel a small lend order and get
"Cancellation of lend orders has been temporarily suspended "
I am not sure that GS are allowed to change my investment setting stop me cancelling Lend Orders and block withdrawals from my Holding account, will contact them, I would be interested to know if this brakes FCA rules. On the Logon screen it states
"Your capital is at risk if you lend to businesses. P2P lending is not covered by the Financial Services Compensation Scheme. FIND OUT MORE"
Looks like the Capital repayments, Holding account funds and interest paid on your Loans is also now at risk.
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Post by gravitykillz on Mar 16, 2020 23:35:38 GMT
In the long term this will do alot to boost and repair growth streets finances. In the short term it may alienate many investors.
But these are tough and unnatural times.
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Post by mrclondon on Mar 16, 2020 23:47:44 GMT
Another platform doing this, if you trust the platform and you don't need the money fine, if not a problem. If you really need the money a real problem. If you really needed the money it should have been nowhere near P2P though. Whilst I don't disagree I think in current circumstances its more a matter of scale ... it really is prudent to increase cash in current accounts to cover many more months of expenditure in this unprecendented situation. Many will be fearful for loss of jobs, or loss of salary payments when requested to take unpaid leave. Yes, redundancy can happen at any time, but I suspect a significant percentage with money to invest in riskier asset classes such as p2p are sufficeintly senior within their organistaions to have a pretty good idea of the security or otherwise of their employment, and may ordinarily be entitled to large redundancy payments (many times statutory minimimum) to provide a cushion.
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Greenwood2
Member of DD Central
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Post by Greenwood2 on Mar 17, 2020 7:34:28 GMT
In the long term this will do alot to boost and repair growth streets finances. In the short term it may alienate many investors. But these are tough and unnatural times. And if they don't sort it out in 90 days it goes to a 'Resolution Event' which seems to mean the platform goes into winddown. Do we think things will be back to normal within 90 days? How long does a “Liquidity Event” last?
A Liquidity Event can last up to 90 days. If the Liquidity Event is remedied, we will let you know by email that normal operation of the platform has resumed. If we are unable to remedy the Liquidity Event within this period, a Resolution Event will be declared.
And from the T&Cs 6.5. If a Resolution Event is declared we will notify you, along with all other Growth Street investors as soon as possible but at the latest, within 5 working days. All funds held in unmatched Lend Orders will be returned to your holding account. Any funds in your holding account will be available to withdraw at any time. No new deposits or Lend Orders will be accepted.
6.6. In order to spread the risk of borrower default equally between all investors, if a Resolution Event is declared, the benefit of all loans outstanding will be immediately assigned to GSP to be held for the benefit of the investors as a whole. All payments received from borrowers will continue to be collected by GSP and held on trust for investors as a whole.
6.7. GSP is free to use funds held in the LLP and/or funds collected from borrowers during a Resolution Event to fund expenses or other payments which it reasonably believes will maximise the probability of borrower repayment, whilst also ensuring borrowers continue to be treated fairly during the collect out process. For example, funds held are likely to be used to fund recovery action against defaulted borrowers and may also be used to fund new drawdown requests if it is determined that a failure to fund the request will materially impact the borrower’s ability to (1) continue trading, (2) repay their facility, or (3) re-finance.
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rscal
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Post by rscal on Mar 17, 2020 8:17:34 GMT
"Yes, yes, but will I get my 'Bonus'?"  |
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alender
Member of DD Central
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Post by alender on Mar 17, 2020 10:04:47 GMT
I tried to withdraw the small amount of money in my Holding account but get
"Due to coronavirus, we are no longer in normal market conditions. Withdrawals of funds from the Growth Street exchange are currently suspended. Read more.
I have spoken to GS and withdraws from holding accounts are allowed, tried this again and it now works.
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Post by df on Mar 17, 2020 14:21:41 GMT
If you really needed the money it should have been nowhere near P2P though. Whilst I don't disagree I think in current circumstances its more a matter of scale ... it really is prudent to increase cash in current accounts to cover many more months of expenditure in this unprecendented situation. Many will be fearful for loss of jobs, or loss of salary payments when requested to take unpaid leave. Yes, redundancy can happen at any time, but I suspect a significant percentage with money to invest in riskier asset classes such as p2p are sufficeintly senior within their organistaions to have a pretty good idea of the security or otherwise of their employment, and may ordinarily be entitled to large redundancy payments (many times statutory minimimum) to provide a cushion. In deed this can seriously affect livelihood of some investors, even those who never thought that they might urgently need this money. However I'd imagine it will be a very small percentage of investors in p2p platforms. Most people in vulnerable financial position won't be investing their spare cash in p2p or any other types of investments. I think what we are witnessing (mass exodus driven by fear) can easily bring well functioning platforms down to a total collapse unless platforms take some radical measures to keep the cash in. I had a look at ABL's SM this morning - I've never seen a picture like this before. Only 3 loans at premium, the rest are at discount. Definitely don't want to join this panic queue. One loan that I've missed in the past (disposal of killing equipment through humanitarian and environmentally safe means) which was always at high premium on SM is now at discount, so I put all my recent returns in to this one. Don't know whether it is right decision or not, but I've decided to maintain my p2p activity as normal.
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Post by ronaldyoung on Mar 17, 2020 20:02:48 GMT
Have had a look at this tonight. I've not bothered to do their FCA test online as I didn't intend to reinvest. Granted I understand their position in needing the liquidity however what are peoples thoughts about them turning on my reinvestment settings without my first passing this test?
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Post by df on Mar 17, 2020 20:35:10 GMT
Have had a look at this tonight. I've not bothered to do their FCA test online as I didn't intend to reinvest. Granted I understand their position in needing the liquidity however what are peoples thoughts about them turning on my reinvestment settings without my first passing this test? From e-mail sent on 4th Nov 2019 - "You’ll need to complete the test before the 9th December in order to make new investments on the platform". In my understanding this doesn't apply to reinvestments of the funds that are already in.
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AC has already done it a couple of days ago... Plenty of bargains on ABL... some platforms are in hands of administrators or winding down... etc. I think at this stage I'm just going to stay put and see what happens next - tired of panicking.
