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Post by vanessaiman on Oct 27, 2016 9:46:32 GMT
Hi james , Vanessa from Octopus Choice here. I saw your post and thought I’d get in touch! While it’s true that investors can’t pick and choose the individual loans in which their money is invested, we do try to be very transparent about the nature of the underlying investments. Currently investors are provided with a map of all the loans in their portfolio, along with how much money is invested in each, and the individual interest rate that each one earns. We’re also about to publish full details of all loans that have been funded through Octopus Choice – not just ones that are currently open for investment, but also those that have been fully funded or redeemed. That info will include loan size, term, LTV and location. We’ll be refining the information we share with our investors all the time – but we think the transparency of this sort of investment sets it apart from more opaque funds where it’s not always clear what’s ‘under the bonnet’. Best, Vanessa Hi vanessaiman , If you are free to express an opinion/information, are you saying that your model works for FCA or are you still waiting? I ask this because as a lender (and I think there are many others ) I am concerned about which platforms will make it through and which not. Also what will happen to the loans and money invested through platforms that do not get fully authorised at the end of the process. Hi adrianc, We completely understand the concern, we're in ongoing positive conversations with the regulator. But rest assured we are absolutely committed to being approved by the FCA and are doing everything required to make that happen. Best, Vanessa
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ablender
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Post by ablender on Oct 27, 2016 10:15:42 GMT
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ablender
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Post by ablender on Oct 27, 2016 10:57:07 GMT
'Operating an electronic system in relation to lending'
So is this a new term acting as a catch all phrase to cross over the varieties, present and future, of the various platforms?
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Post by easteregg on Oct 27, 2016 12:42:10 GMT
'Operating an electronic system in relation to lending' So is this a new term acting as a catch all phrase to cross over the varieties, present and future, of the various platforms? This is an FCA permission that all peer-to-peer companies need to have to operate a P2P platform. Please note that the FCA's definition of P2P is different from my definition!
I received an email from one P2P platform yesterday and they stated that they have had to change their business model following guidance from the FCA. I've put together a small blog on this.
blog.p2pmoney.co.uk/insight-into-fca-requirements
This will affect some P2P companies I use.
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Liz
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Post by Liz on Oct 27, 2016 12:54:37 GMT
"The platform stated that their legal team had advised that it was against Article 36H to give lenders voting rights when the borrower has defaulted."
That is very interesting. That rules the likes of TC out for full authorisation at the moment then.
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james
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Post by james on Oct 27, 2016 13:06:21 GMT
'Operating an electronic system in relation to lending' So is this a new term acting as a catch all phrase to cross over the varieties, present and future, of the various platforms? We don't know yet. It'll be very interesting to see whether the FCA approves any platforms as "P2P but not 36H P2P", which was the state of many platforms before FCA involvement and still seems to be so today. That is, will the FCA treat the existence of 36H as an order to force the shut down of any P2P platforms for which 36H didn't provide a definition? At the moment I have the impression that rather than finding out what P2P is generally considered to be and regulating with that broad range of definitions, to the extent it's within the FCA's jurisdiction, the FCA may be trying to bend P2P to the existing pigeonholes. Which is not what I expect to be done for an emerging area.
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james
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Post by james on Oct 27, 2016 13:28:09 GMT
"The platform stated that their legal team had advised that it was against Article 36H to give lenders voting rights when the borrower has defaulted." That is very interesting. That rules the likes of TC out for full authorisation at the moment then. From the FCA copy of 36H: " the operator of the electronic system in relation to lending which facilitates the agreement does not provide credit (within that meaning), assume the rights (by assignment or operation of law) of a person who provided credit, or receive credit under the agreement;" So assignment of such things as IVA voting rights appears to be prohibited by 36H. Of course there are other sorts of voting processes, like a vote on whether to proceed with taking action, which would appear to be stripping the lenders who want to take action of their rights and so far as I can tell I agree with legal advice on that that it would not be permitted to respect a vote unless every lender* cast a vote and voted not to. *every lender can be a very high hurdle given that a former lender may be dead and it can take years to sort out who is to handle an estate.
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jonah
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Post by jonah on Oct 28, 2016 4:45:00 GMT
"The platform stated that their legal team had advised that it was against Article 36H to give lenders voting rights when the borrower has defaulted." That is very interesting. That rules the likes of TC out for full authorisation at the moment then. And AC. Tagging andrewholgate due to previous discussions on this topic.
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Post by andrewholgate on Oct 31, 2016 19:21:59 GMT
Apologies for the lateness, I have been on holiday (of sorts).
I'm not sure Article 36H gives any views on voting rights as I read it but defines what a lender is and what a platform is under the regulated agreement.
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jonah
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Post by jonah on Oct 31, 2016 19:44:11 GMT
Apologies for the lateness, I have been on holiday (of sorts). I'm not sure Article 36H gives any views on voting rights as I read it but defines what a lender is and what a platform is under the regulated agreement. Interesting... I suspect this sort of wrinkle will be ironed out over time, hopefully in a consistent manner by hmrc.
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