bigfoot12
Member of DD Central
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Post by bigfoot12 on May 27, 2015 9:39:56 GMT
Article in FT ( read here) says that the P2PFA is introducing a rule to make sure that institutions aren't favoured over retail investors in the choice of loans. One interesting point in the article is that Funding Circle allots loans to institutions randomly. But "a small number of loans" that are rejected by institutions are then sold to retail investors. If this goes ahead I might take notice of which platforms are members. |
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Post by Deleted on May 27, 2015 14:56:51 GMT
I think it's a very admirable idea, however given that, in reality, the P2PFA doesn't really have that much power (comparing to the FCA) I'm not sure how they would police it?
Plus if an institution really steps up and a platform wants the capital, are they really going to say no? I think it would put a lot of institutions off (given that some already involved have an agreement to pick and choose loans).
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bigfoot12
Member of DD Central
Posts: 1,817
Likes: 816
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Post by bigfoot12 on May 27, 2015 16:48:09 GMT
Plus if an institution really steps up and a platform wants the capital, are they really going to say no? I think it would put a lot of institutions off (given that some already involved have an agreement to pick and choose loans). It would seem that it would be okay, just that they couldn't be a member of the P2PFA at the same time. Wellesley used to be a member, members aren't allowed to borrow from their own members, Wellesley had a good idea which would breach that rule so they left. I am very concerned about cherry-picking. So if some platforms can demonstrate that they don't allow it they will get a greater share of my money.
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