michaelc
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Post by michaelc on Sept 6, 2021 20:57:03 GMT
<The head of the FCA said> " ....which are not regulated by the FCA or covered by any compensation scheme.
"If you buy them, you should be prepared to lose all your money," www.bbc.com/news/technology-58462517Does this imply that if the company/platform you invest with is regulated by the FCA it reduces your chance of losing all your money? IMO, it doesn't and the FCA shouldn't be allowed to lie about it without evidence. |
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registerme
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Post by registerme on Sept 6, 2021 22:17:51 GMT
To an extent. But you're ignoring:-
a) "... or covered by any compensation scheme" (ie FSCS).
b) chance is not the same as certainty.
c) reduction is not the same as elimination.
d) your disagreement with the statement does not make it a lie.
The FCA are, rightly (imho), vulnerable to an awful lot of criticism, as much of it to do with P2P as with anything else.
This statement isn't an example that you or anybody else should go all in on.
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michaelc
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Post by michaelc on Sept 7, 2021 12:18:02 GMT
Didn't intend to go "all in" but their statement annoyed me as their implication is that financial services are much safer when regulated by them and they provide no evidence for that. (My favourite expression).
Now it seems they're splitting opinions of us investors when we should be uniting and pushing for a "better" FCA not one which gives a false sense of security.
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cwah
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Post by cwah on Sept 17, 2021 11:30:45 GMT
Do we actually have evidence that its actually more dangerous to invest with FCA stamp than without?
Just look at Lendy or FundingSecure with total fraud AND investors being dilapided by all parties including administrators and the FCA fees?
The ringfencing is a joke because administrator can still dip into it if no money is left for administration.
The massive lack of liquidity created by the FCA when they intervened in Lendy or FS was only adding to the drama and increased legal and administration fees.
They are like a layer of administration fees added to the investors for no benefit.
My best annecdote is that the ONLY p2p platform I made good return over years were not authorised by the FCA and was an international one (Mintos).
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Post by overthehill on Sept 19, 2021 8:36:57 GMT
Seemed the most appropriate recent thread for this tweet. The obvious corollary of course is invest in regulated P2P instead where scammers can't thrive!!
@consumer_gripes
‘The FCA doesn’t regulate cask whisky investment, making it a space where scammers can thrive. A big problem is that cask purchasers won’t realise they have a problem until years from now when they want to cash in on their investment.’
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registerme
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Post by registerme on Sept 19, 2021 17:56:34 GMT
An interesting comment in last week's Economist along the lines that the SEC's annual budget is $2b. Which is less than JP Morgan Chase's annual marketing budget.
I don't imagine the situation is very different in the UK eg Barclays / HSBC compared with the FCA.
I'm no fan of the FCA, but I do recognise that they have an impossible task.
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Greenwood2
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Post by Greenwood2 on Sept 19, 2021 20:23:37 GMT
An interesting comment in last week's Economist along the lines that the SEC's annual budget is $2b. Which is less than JP Morgan Chase's annual marketing budget. I don't imagine the situation is very different in the UK eg Barclays / HSBC compared with the FCA. I'm no fan of the FCA, but I do recognise that they have an impossible task. I calculated a while ago how much funds the FCA had per company they regulate, it was not a lot. I agree they have not served P2P lenders well but they need much more funding for the job. I also think they were more concerned about the potential problems for borrowers as the customers in terms of P2P, so lenders were left in a bit of limbo.
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