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Post by chris on Sept 7, 2015 16:32:00 GMT
This isn't an invest and hold account, or even a one month access account, it's designed to be near instant access account in normal market conditions. One feature the email didn't cover is that you can set your other accounts to automatically invest idle cash in the QAA. So you could have £10k invested in the MLIA, for example, waiting for a loan to draw down or waiting for obscure loan units to become available and that money will earn 3.75% until it's needed. The system will automatically pull the money out of the QAA as soon as loan units become available on the loans you're interested in. , just to check my understanding of your comment: If a highly oversubscribed new loan goes live on the platform and you have a target set for it in your MLIA but your funds for buying into it are sitting in this new QAA, is it guaranteed that you will be allocated just as much of the new loan as if your cash was sitting waiting in the MLIA? I'd hate to miss out on my full allocation of a 12%+ loan for 4 or 5 years just to receive a couple of days' interest at 3.75%! You will be allocated your part of the loan as if the QAA funds were back in the account they came from, MLIA in your example. Whatever you are allocated is then pulled from the QAA at the point of sale providing there is enough liquidity. So I can't guarantee it, as that has legal meaning, but there are a lot of optimisations in place (such as ordering sales so that those that will auto-reinvest that money back into the QAA are executed first) to try and make sure that it's as close to guaranteed as possible.
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Post by chris on Sept 7, 2015 16:33:55 GMT
Also to be clear there are two methods of investing. One is to turn on the auto investment feature which can be enabled for all investment accounts excluding the cash account or all accounts including the cash account. The other is directly into the QAA as you would any other account. The two methods are independent so if one isn't of interest you can still use the other.
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SteveT
Member of DD Central
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Post by SteveT on Sept 7, 2015 16:34:48 GMT
chris, just to check my understanding of your comment: If a highly oversubscribed new loan goes live on the platform and you have a target set for it in your MLIA but your funds for buying into it are sitting in this new QAA, is it guaranteed that you will be allocated just as much of the new loan as if your cash was sitting waiting in the MLIA? I'd hate to miss out on my full allocation of a 12%+ loan for 4 or 5 years just to receive a couple of days' interest at 3.75%! You will be allocated your part of the loan as if the QAA funds were back in the account they came from, MLIA in your example. Whatever you are allocated is then pulled from the QAA at the point of sale providing there is enough liquidity. So I can't guarantee it, as that has legal meaning, but there are a lot of optimisations in place (such as ordering sales so that those that will auto-reinvest that money back into the QAA are executed first) to try and make sure that it's as close to guaranteed as possible. OK, that sounds good, provided it all works as you describe. I may give it a whirl (with a degree of trepidation...)
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Sept 7, 2015 16:50:33 GMT
Also to be clear there are two methods of investing. One is to turn on the auto investment feature which can be enabled for all investment accounts excluding the cash account or all accounts including the cash account. The other is directly into the QAA as you would any other account. The two methods are independent so if one isn't of interest you can still use the other. Dont suppose the auto investment feature will suck up all the nanopence loitering in my various accounts so I can finally be fully invested?
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Post by chris on Sept 7, 2015 16:52:12 GMT
Also to be clear there are two methods of investing. One is to turn on the auto investment feature which can be enabled for all investment accounts excluding the cash account or all accounts including the cash account. The other is directly into the QAA as you would any other account. The two methods are independent so if one isn't of interest you can still use the other. Dont suppose the auto investment feature will suck up all the nanopence loitering in my various accounts so I can finally be fully invested? Yup, it will. No minimum balance.
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Post by mrclondon on Sept 7, 2015 16:54:29 GMT
A few weeks ago Stuart wrote on the GBBA thread: It is likely that the GEIA and GBBA will tend towards 30 day liquidity in the next few months vs the current few minutes liquidity and there will be a new liquidity account with very fast liquidity as its primary aim and a modest coupon. Now the new account is being launched, it would be helpful if someone at AC could clarify the liquidity strategy of GEIA and GBBA going forwards and the implications of this for current lenders in those accounts.
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Post by chris on Sept 7, 2015 16:57:38 GMT
A few weeks ago Stuart wrote on the GBBA thread: It is likely that the GEIA and GBBA will tend towards 30 day liquidity in the next few months vs the current few minutes liquidity and there will be a new liquidity account with very fast liquidity as its primary aim and a modest coupon. Now the new account is being launched, it would be helpful if someone at AC could clarify the liquidity strategy of GEIA and GBBA going forwards and the implications of this for current lenders in those accounts. Nothing artificial to deliberately delay them, but the QAA is given priority of sale over them and the MLIA. So if there's lots of people looking to sell and only a few buyers it's the QAA that would get priority. As deal flow increases that's likely to push liquidity down for the GEIA / GBBA that are currently flattered in that regard by a shortage of loans.
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Post by chris on Sept 7, 2015 17:04:35 GMT
A few weeks ago Stuart wrote on the GBBA thread: It is likely that the GEIA and GBBA will tend towards 30 day liquidity in the next few months vs the current few minutes liquidity and there will be a new liquidity account with very fast liquidity as its primary aim and a modest coupon. Now the new account is being launched, it would be helpful if someone at AC could clarify the liquidity strategy of GEIA and GBBA going forwards and the implications of this for current lenders in those accounts. I should also add that with discounts coming to the MLIA that would also reduce liquidity for the GEIA and GBBA as priority is naturally given to discounted loan units.
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Post by stuartassetzcapital on Sept 7, 2015 17:52:39 GMT
Hello all
I think the main thing to take away here is this is an investment facility with the highest liquidity that we can generate and from our research currently has the highest coupon for its account type that there is in P2P space for quick access. It is mostly cash backed and able to release cash in 'normal market circumstances' in a few seconds and we will look to publish the recent average withdrawal time for transparency. It has been designed to be compliant with all regulation and permit people to 'sweep' spare cash that they have on the platform into it to earn a return and then release it immediately when new investment 'targeted' is available - whether MLIA or another investment account. It should up your average return with AC. Feel free to test it in and out and also note the current account cap is £1m and the personal account investment cap is £25k as all this aids liquidity, so first come first served.
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Post by Financial Thing on Sept 7, 2015 18:03:12 GMT
What's MLIA, GEIA and GBBA?
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Post by stuartassetzcapital on Sept 7, 2015 18:08:40 GMT
Hi MLIA is the Manual Lending Inevstment Account - no provision fund and highest gross returns on AC platform GEIA is the Green Energy Income Account - renewable energy projects GBBA is the Great British Business Account All info here : www.assetzcapital.co.uk/our-investor-accounts/ |
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Post by chris on Sept 7, 2015 18:15:37 GMT
What's MLIA, GEIA and GBBA? Manual Loan Investment Account Green Energy Income Account Great British Business Account The last two are variations on the auto-invest theme whereby you stick you money in and the system does the rest for you. They also give you access to provision fund protection at the expense of a lower return (capped at 7%). The MLIA is our manual way of investing and is getting a big upgrade tomorrow so I'll describe the functionality that will be present then. With this account you can browse through all the loans on our loan book, including the same loans the GEIA and GBBA invest into, you can read all the credit reports, see the valuations, etc. and then you make a manual decision to invest into those loans. Our markets are fully automated so there's no picking and choosing of individual loan units, instead you create a buy order saying how much you want to invest in a given loan, the minimum discount level you are interested in buying at, how long that buy order is valid for (e.g. 1 month, or indefinitely), and what should happen if there is a credit or monitoring event (should the system continue trading, pause, or delete your buy order?). You can also create sell orders that do the opposite, list some or all of your holding for sale for a period of time at a set discount (or par value). At launch you'll only be allowed to create a single buy or sell order per loan but the underlying system supports an unlimited number of them so we're likely to open that up further down the road, even allowing circular buy / sell orders where you could buy at a 2% or better discount and then immediately sell at par. The system also supports premiums behind the scenes but won't launch with that facility tomorrow. With the MLIA you get the full interest amount offered by the borrower to lenders but do not have any provision fund protection. With all three of the investment accounts, and the QAA as well, you need to deposit funds into the accounts. When you deposit funds into the platform that goes into your cash account and from there you need to invest it into the accounts you want to lend via. There's another new feature going live tomorrow whereby you can deposit funds directly into any of your accounts by using different reference codes.
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Post by chris on Sept 7, 2015 18:25:31 GMT
No one is suggesting breaching AML regs but if a borrower owes 19K in interest, pays 19k to AC I would expect that you could argue keeping & distributing it to lenders was a reasonable action & not in breach of the law, even if it required further paperwork to "prove the source" later. Simply sending it back, exposing lenders to further non payment risk & then hiding behind AML/KYC is not a fair way to treat lenders & deleting/hiding their concerns from the Q&A is very poor form IMO.
We can't keep the cash in the client money account as that would be in breach of the regulations, and we couldn't distribute it to lenders. So we'd have to take the money out into our own accounts which I would guess is a breach of client money rules and the rules of our trust. I'll check the details but sending it back is likely the only legal course open to us. This isn't something that would have been done lightly. I will look into the Q&A issue though as this is the type of question that, if phrased as per the rules, should not be censored unless it is a duplicate. Hi Butch Cassidy, I've checked in with the lender team and they have said that the question was removed because it wasn't in the form of a question but was instead a posting of your opinion on the situation. The Q&A isn't designed to be a forum for lenders to discuss their opinions with each other or to tell others what their thoughts or feelings are but to ask precise and concise questions of the platform and borrower. As such it is moderated to keep the resource for the intended purpose. If we add a forum to our site then that would be the correct place to discuss these things in a more conversational manner, or you can do so here where several directors and senior staff engage openly, but that place is not our Q&A. With the payment the method of payment was unusual and we escalated it to our full time compliance officer (who is also a director). He advised the admin team that we could not accept the funds and that legally they had to be returned. We always act upon his advice for obvious reasons. I've also been advised that the monthly repayment has been made except for £570, but I don't have any further information on why that is or when we're expecting that final part of the payment to be made.
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Post by bracknellboy on Sept 7, 2015 18:28:19 GMT
Apologies if this has been answered / stated and I've missed it.
Do I assume that there is no specific linkage between the MLIA and the QAA. I.e. if I have targets set on my MLIA but insufficient monies in the MLIA to meet them, that if loan units become available for it to purchase that doesn't trigger a sell off from my QAA to cover them ? For me, the reason for having 'uninvested cash' on the platform is because I have money set aside in the MLIA to cover targets. I would have thought that would be the same for any MLIA user, and for me would be the primary use case for a 'sweep account' to minimise dead time (which is how it appears to have been pitched in the email notification i.e. utilise uninvested money, rather than as a completely separate/orthogonal reason to invest on AC).
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Post by chris on Sept 7, 2015 18:33:07 GMT
Apologies if this has been answered / stated and I've missed it. Do I assume that there is no specific linkage between the MLIA and the QAA. I.e. if I have targets set on my MLIA but insufficient monies in the MLIA to meet them, that if loan units become available for it to purchase that doesn't trigger a sell off from my QAA to cover them ? For me, the reason for having 'uninvested cash' on the platform is because I have money set aside in the MLIA to cover targets. I would have thought that would be the same for any MLIA user, and for me would be the primary use case for a 'sweep account' to minimise dead time (which is how it appears to have been pitched in the email notification i.e. utilise uninvested money, rather than as a completely separate/orthogonal reason to invest on AC). The linkage is at a very low level and operates on a per investment account basis. So if you invest in the QAA from idle funds in both the MLIA and the GEIA then the funds remain segregated. If you invest directly in the QAA then it is again segregated so no external triggers will force a sale. With the MLIA sweep the release of funds from the QAA is at the point of purchase of a loan unit, so when the system tries to process a transaction against the MLIA balance (cash + swept amount) it instantaneously tries to release the funds needed to complete the transaction. Because of the per lender cap if you have more than £25k sat idle in the MLIA then it will take the unswept cash in preference to releasing funds from the QAA. That per lender cap is also across all accounts, so you couldn't have £25k via the MLIA and £25k via the GBBA.
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