ablender
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Post by ablender on Jan 26, 2016 19:56:49 GMT
I am doing a bit of research on the platforms I invest through about their current FCA position.
In SS's company timeline I found that Lendy Ltd became authorised and regulated by the FCA in April 2014.
I am assuming that this means "Full Authorisation" not "Interim Permission". Is this correct.
The other question I have is this.
If Lendy Ltd is authorised by the FCA, does it follows that Saving Stream is authorised as well or does it need it's own authorisation?
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Jan 26, 2016 20:00:57 GMT
I am doing a bit of research on the platforms I invest through about their current FCA position. In SS's company timeline I found that Lendy Ltd became authorised and regulated by the FCA in April 2014. I am assuming that this means "Full Authorisation" not "Interim Permission". Is this correct. The other question I have is this. If Lendy Ltd is authorised by the FCA, does it follows that Saving Stream is authorised as well or does it need it's own authorisation? Saving Stream is the trading name of Lendy Ltd, so any mention of "Saving Stream" goes hand in hand with Lendy Ltd. So yes; Saving Stream is authorised via the FCA via it's trading name Lendy Ltd It's interesting that the FCA lists the business as being located in the Isle of Wight. I never realised that; I thought they were in Portsmouth.....
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Post by mattie on Jan 26, 2016 20:12:25 GMT
Until relatively recently, they were based in the Isle of Wight. I imagine it takes a while for a change of address to work its way through the system onto the documentation.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Jan 26, 2016 20:13:48 GMT
Just to add to what I said above If you go to the FCA Register and search for Lendy Ltd you will see “Trading/ Brand Names” that the FCA knows that Lendy use “Saving Stream” as a trading name, so all above board. Seems there are 2 listings for Lendy Ltd; one located in the Isle of White, and another located in Portsmouth. The listing in Isle of White has been registered since 06/05/2014, but the listing in Portsmouth has no effective date (presumably because it is only Interim Permission). |
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ilmoro
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Post by ilmoro on Jan 26, 2016 20:16:17 GMT
I am doing a bit of research on the platforms I invest through about their current FCA position. In SS's company timeline I found that Lendy Ltd became authorised and regulated by the FCA in April 2014. I am assuming that this means "Full Authorisation" not "Interim Permission". Is this correct. The other question I have is this. If Lendy Ltd is authorised by the FCA, does it follows that Saving Stream is authorised as well or does it need it's own authorisation? SS only have interim permission, their slot for applying for full permission is Q1 this year
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Jan 26, 2016 20:24:50 GMT
Intresting..... Lendy Classic is listed as one of the trading names, and a quick search on google comes up with " lendyclassic.com; classic car loans - This page has been reserved for future use" EDITA quick search shows that this is old news. |
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ablender
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Post by ablender on Jan 26, 2016 20:28:59 GMT
Thanks for your helpful replies.
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ablender
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Post by ablender on Jan 26, 2016 20:52:43 GMT
So all the platforms that I use have an interim permission. As far as I could find only 2 (FC and SS) have the opportunity / will be applying soon for a full authorisation.
I could not find anything about the others (LC, FS, MT, AC, ABL, ReBS) beyond their interim permission.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Jan 26, 2016 21:08:19 GMT
So all the platforms that I use have an interim permission. As far as I could find only 2 (FC and SS) have the opportunity / will be applying soon for a full authorisation. I could not find anything about the others (LC, FS, MT, AC, ABL, ReBS) beyond their interim permission. Information that I have picked up studying the FCA website in the last hour A firm that has interim permission will ultimately have to apply for full authorisation to continue carrying out consumer credit activities. So all those P2P businesses with interim permission will have to apply for full authorisation eventully. Interim permission to conduct consumer credit activities will last until a firm has completed the application process and the FCA have granted a decision regarding authorisation. I believe that this has all come about because of the abolition consumer credit licence in 2014 which was replaced by authorisation from the FCA. When this occered companies (such as SS, LC, FS, MT, AC, ABL, ReBS) that already had consumer credit licences was able to apply for an interim permission. I’m just not sure how long this interim permission lasts.
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ablender
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Post by ablender on Jan 26, 2016 21:24:47 GMT
So what will happen if a platform applies for full authorisation and it is not granted?
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Jan 26, 2016 21:31:16 GMT
So what will happen if a platform applies for full authorisation and it is not granted? If they are still within their interim period then they can still offer credit up to April 2016 (see below), and reapply during this period. After that date, if authorisation is not granted they won't be able to offer credit to clients. So after some more research, I found out that it seems that when the consumer credit licences was abolished it was simply was not feasible for the FCA to process all the applications. So these interim permissions where provided to companies that had consumer credit licences so that the FCA could concentrate on new application. These interim permissions companies will be able to apply for full authorisation between October 2014 and April 2016.
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ilmoro
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Post by ilmoro on Jan 26, 2016 21:56:52 GMT
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nick
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Post by nick on Feb 1, 2016 7:59:31 GMT
Whilst obtaining full FCA authorisation would be welcome, I wouldn't place to much reliance on it. It is particularly telling that P2P platforms are/will not be covered by the Financial Services Compensation Scheme that covers most other financial service companies - not a big vote of confidence that their light touch regulation will prevent future material platform failures/client losses..........
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webwiz
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Post by webwiz on Feb 1, 2016 9:03:47 GMT
Whilst obtaining full FCA authorisation would be welcome, I wouldn't place to much reliance on it. It is particularly telling that P2P platforms are/will not be covered by the Financial Services Compensation Scheme that covers most other financial service companies - not a big vote of confidence that their light touch regulation will prevent future material platform failures/client losses.......... The FSCS is funded by IFA's out of their commission. You can't really expect them to fund p2p losses when they don't make any commission. So this does not impact confidence IMO.
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Post by chris on Feb 1, 2016 9:24:30 GMT
Whilst obtaining full FCA authorisation would be welcome, I wouldn't place to much reliance on it. It is particularly telling that P2P platforms are/will not be covered by the Financial Services Compensation Scheme that covers most other financial service companies - not a big vote of confidence that their light touch regulation will prevent future material platform failures/client losses.......... What the FCA authorisation will do is provide an in depth review of each business and their operating practices. Platforms will have to demonstrate compliance with the regulations and will face detailed quizzing by the FCA about their operating practices, processes, and key members of staff. In theory this should weed out any dodgy or naive platforms who are not properly protecting investors be it through client money breaches, improper loan contracts, insufficient funds to continue operating in the long term, flawed legal procedures, moral hazard within operating practices, correct corporate governance, and so on. Time will tell how complete and thorough it is, and you can never fully rule out wilful fraud, although I'm hopeful the FCA will be successful in this and that the industry as a whole will be left stronger afterwards. As webwiz says the FSCS is something else entirely.
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