Access Accounts Run Off - by the (rough) numbers (AC)

Summary of Key Changes

- A new section on "Alternatives to the solvent run off" that explains why other options such as enacting the platform wind down arrangements, appointing administrators to perform an insolvent run off, or offering the loan book for sale to an institutional funder were considered but rejected as potentially more detrimental to lenders than the solvent run off with the lender fee. It also compares the expected outcomes of each alternative with the solvent run off plan.

- Updated the lender fee plan to extend the initial fee of 2.9% pa of performing loans from June 2023 to December 2023. This increases the average fee level for the first 12 months from 2.15% to 2.90% and the five-year effective fee from 1.15% pa to 1.3% pa. The lender fee plan is subject to review over time and may change depending on the circumstances. It also provides an example of how the fee will affect a typical lender's account balance over time.

- Updated the estimated date for distributions from the Access Accounts to commence from July 2023 at the earliest, instead of some six months from December 2022. The estimated date is still subject to review and may change depending on various factors. It also explains how the distributions will be calculated and paid out to lenders.

- Updated some FAQs to reflect the changes in the lender fee plan and the Access Accounts distributions. The FAQs will be updated over time during the run off. They also include some new questions and answers that were not covered in the first blog post, such as how interest will be accrued and paid during the run off, how tax statements will be issued, and how lenders can contact customer service.

- Has removed some redundant text such as "We have notified the Financial Conduct Authority of our intentions" and "We were originally founded to support retail access to fair returns over a period of relatively poor returns elsewhere" that were repeated twice in the first blog post. It also makes the blog post shorter and more concise.

- Has removed some redundant text such as "We have notified the Financial Conduct Authority of our intentions" and "We were originally founded to support retail access to fair returns over a period of relatively poor returns elsewhere" that were repeated twice in the first blog post. It also makes the blog post shorter and more concise.

---------------- UPDATE from me [12 May 2023] ----------------------

ARCHIVED version of the ORIGINAL [3744 word] announcement [15 Dec 22] archive.is/41VSU

ARCHIVE of CURRENT [4827 word] version [at 12 May 23] archive.is/BQSHd (now hosted on different route directory and with the previous page 404'd)

Please note the 'Ed-ditions'