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Post by wellesleyco on Feb 11, 2014 17:11:33 GMT
Good Afternoon Everyone, We have just uploaded our latest press release onto our website. It can be viewed here: www.wellesley.co.uk/about_us/news/view/34To summarise: Wellesley & Co Funds £6,000,000 of Loans Wellesley & Co joins the P2PFA Wellesley & Co Launches Monthly Access term – 2.25% AER We welcome any feedback from this!
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bugs4me
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Post by bugs4me on Feb 11, 2014 18:35:34 GMT
Good release and straight to the point. I've probably missed this somewhere and going slightly OT, what are Wellesley's plans regarding the FCA?
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oldgrumpy
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Post by oldgrumpy on Feb 11, 2014 18:44:48 GMT
Bugsy - I don't suppose Wellesley will prosecute me for copyright infringements for showing this, which was on the "letter":
Quote:
The next Major industry event will be regulation by the FCA from April the 1st. Wellesley & Co stands apart from its competitors by the fact that our senior officers and directors have operated under this regime since the beginning of their careers and that therefore built Wellesley & Co to comply with the high standards set by this regulator.”
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bugs4me
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Post by bugs4me on Feb 11, 2014 22:11:51 GMT
Bugsy - I don't suppose Wellesley will prosecute me for copyright infringements for showing this, which was on the "letter": Quote: The next Major industry event will be regulation by the FCA from April the 1st. Wellesley & Co stands apart from its competitors by the fact that our senior officers and directors have operated under this regime since the beginning of their careers and that therefore built Wellesley & Co to comply with the high standards set by this regulator.”
Thanks for the quote - award yourself another banana However, are Wellesley going to become members of the FCA in their own right or try to operate under the umbrella as an AR from another company. The overall costs of FCA membership are far higher than I think many of the smaller players in the P2P/P2B market realise although I'm not suggesting Wellesley fall into this category. Just after some confirmation which in fairness I may have missed on another post from them.
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Post by wellesleyco on Feb 12, 2014 13:49:57 GMT
bugs4me We intend to become a fully registered firm in our own right. Not through another firm as an AR. As mentioned in the letter Our directors have managed Category A licensed companies in the past (Assets over £1bn) and are therefore comfortable operating in this environment.
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bugs4me
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Post by bugs4me on Feb 12, 2014 14:01:06 GMT
bugs4me We intend to become a fully registered firm in our own right. Not through another firm as an AR. As mentioned in the letter Our directors have managed Category A licensed companies in the past (Assets over £1bn) and are therefore comfortable operating in this environment. Thank you for the confirmation. Irrespective as to the 'history' of your directors, operating as an AR results in that company being covered by the PI cover granted by the regulated company as we both are aware. But as Wellesley will be directly approved then this will not apply. Your clarification is appreciated.
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shimself
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Post by shimself on Feb 12, 2014 22:39:49 GMT
Just to ask, with your experience, do you feel that regulation will be beneficial to us private lenders, and how? I fear lots of form filling and no sense.
Steve
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Post by uncletone on Feb 12, 2014 23:25:15 GMT
I'm still pedantically struggling with " our senior officers and directors have operated under this regime since the beginning of their careers and that therefore built Wellesley & Co to comply with the high standards..."
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bugs4me
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Post by bugs4me on Feb 13, 2014 11:53:16 GMT
I'm still pedantically struggling with " our senior officers and directors have operated under this regime since the beginning of their careers and that therefore built Wellesley & Co to comply with the high standards..." The phraseology could no doubt have been worded differently 'and that therefore' looks like a rushed reply to say the least. What though I believe they were referring to is the FSA who were loosely referred to as a 'regime' if you were a member. The original EU FSMA introduced IIRC in 2001 was never intended for contracts less than €500. However our HMG decided it should apply to just about everything. So you finished up with management by committee at the FSA. So a relatively simple EU directive was 'gold plated' by our masters and the eventual handbook introduced in 2005 which ran to a few thousand pages - was both vague and contradictory in places. Simple queries to the FSA were often met with the reply of 'you must use your best judgement as we do not give direct advice' - not particularly helpful to say the least. I agree though, Wellesley should not have used the word 'regime' as unless you have been involved with the FSA it could easily be interpreted as a dictatorship.
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JamesFrance
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Port Grimaud 1974
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Post by JamesFrance on Feb 13, 2014 17:35:17 GMT
The words Authority and Dictatorship do seem remarkably similar. Much like European Union and Trade Union are close.
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Post by wellesleyco on Mar 13, 2014 8:26:54 GMT
shimself, I apologise for the delay in responding to this page, we hadn't noticed that there were unanswered responses.
We believe that regulation will be an overwhelmingly good thing for the lenders using P2P platforms. It is clear that the regulation being introduced focusses on the cornerstones of what a normal regulated firm must adhere to (eg. Segregation of client money from company money, effective anti moneylaundering checks, Treating Customers Fairly, orderly run-off administration planning etc). Furthermore, there is a particular emphasis on disclosure of risks and making sure that financial promotions are not misleading. There will also be minimum capital requirements and reporting obligations. All of these factors are important and will also reduce the chances of less scrupulous operations being able to exist. To temper all of this, we personally do not view the new regulations as being overly restrictive or unreasonably difficult to manage and therefore as P2P lending becomes more and more mainstream it will enhance consumer confidence and hopefully decrease the risk posed to you by the 'p2p operators'.
bugs4me, yes the response does read a little rushed and agreed on the misuse of the word 'regime', your kind response does explain our stance well.
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