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Post by CircLender on Feb 9, 2016 2:35:48 GMT
I think this idea has a lot of merit and might find a lot more users than you might immediately think. Its main merit is that it could make it socially acceptable for people to approach family, friends and neighbours for a loan for a good purpose. For example somebody might want cash for a piece of vocational education, business equipment or somewhere to live. Young people particularly could use the platform as a way of getting small pledges from a large number of older relatives, friends and neighbours to try to reach their target amount. I totally get it. All British people like to see a progress bar move towards 100% don't they? A bit like watching the Blue Peter Christmas appeal indicator? A collective warm glow? Thanks! That's the whole intention we are in this business. Lots of people especially in Asia are not that receptive to p2p lender as yet. When FF loans become an option, it is hardly any integrated tools that can help them formalise and keep track of the repayment. We try to fill the gap here, with the cheapest possible solution to have everything in one place. Will look into more depth in the cultural elements of our offering in different countries. I believe with right marketing and education efforts, we have the chance to capture a sizable market worldwide. Thanks for your feedback.
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Post by ablrateandy on Feb 9, 2016 2:42:03 GMT
I thought that there were still no peer-to-peer firms in Singapore because of the Moneylenders Act... or did the law change?
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Post by CircLender on Feb 9, 2016 2:46:16 GMT
I thought that there were still no peer-to-peer firms in Singapore because of the Moneylenders Act... or did the law change? Try visiting capital match in SG to cross check your belief. They are doing p2p loans for small businesses. A similar model to what you r doing right now.
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Post by ablrateandy on Feb 9, 2016 2:48:24 GMT
They are peer to business so exempt from the Moneylenders Act. What you are proposing is peer to peer, which does fall under the Act.
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Post by CircLender on Feb 9, 2016 2:53:34 GMT
They are peer to business so exempt from the Moneylenders Act. What you are proposing is peer to peer, which does fall under the Act. Not sure if I can share links in this forum. You can use this as a good start to understand SG/Asia's p2p scenario. www.quora.com/Singapore/Are-there-any-peer-to-peer-lending-companies-in-SingaporeIn SG, p2p platform might needs to register with MAS if the platform handles investors money. CircLender does not handle users money, and we don't provide fund transfer option via 3rd parties. All money's among FF are done offline. I am doing this because I understand the diversity of regulations to cope with if I want to roll out CircLender in a global scale. The idea is to start with a social finance tools and get it launch in as many countries as we can, then move into fund management when p2p regulations get more mature globally.
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Post by ablrateandy on Feb 9, 2016 2:58:13 GMT
Yes... And what does it say about lending to individuals?
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Post by ablrateandy on Feb 9, 2016 2:59:45 GMT
So under SG law, every person that lends money through (or not through, as you feel it is) your site needs to be registered as a moneylender with the MAS.
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Post by CircLender on Feb 9, 2016 3:06:10 GMT
So under SG law, every person that lends money through (or not through, as you feel it is) your site needs to be registered as a moneylender with the MAS. Just spend sometimes reading the info I sent to u earlier. U will have the answer within the context. I hope you can understand more on P2P lending scenario in SG after reading the material. Quite educational.
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Post by ablrateandy on Feb 9, 2016 3:09:40 GMT
But what you are encouraging is illegal and the contracts are void unless the law changed?! You seem to be missing my point.
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Post by CircLender on Feb 9, 2016 3:13:09 GMT
But what you are encouraging is illegal and the contracts are void unless the law changed?! You seem to be missing my point. I hope your feedback can be more constructive from now. You start off with offering feedback to me, how come u r now asking me all the questions which I thought u already have a deep understanding on the issue. Read this... Is within the context. Currently, P2P companies are not regulated by the Monetary Authority of Singapore (MAS), but soon will be. MAS has set up the FinTech and Innovation Group internally to study P2P as well as other alternative financing products. Note that MAS has also officially committed $225 million to provide support for creation of a vibrant innovation system in FinTech through its Financial Sector Technology & Innovation or “FSTI” scheme. The remarkable interest in P2P Lending stems from the immense success of firms like Lending Club and Prosper. There is strong basis to believe that similar success can be achieved in Singapore/Asia.
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Post by CircLender on Feb 9, 2016 5:28:27 GMT
Hi all,
Attached is a sample promissory note generated by CircLender. I hope to gather inputs on this piece of legal document from UK users' point of view.
I try to keep the note simple because we are formalising FF loans. The main objective is to prevent misunderstanding on the loan arrangement and protect the lender's interest in writing. I believe, in very rare case this note will end up in court.
I do it with reference to online legal resources from US & UK. Here is the consideration when I design the template:
A promissory note is a legal instrument similar in nature to any common law contract. In order for a contract to be enforceable, it must contain certain legal conditions such as an offer and an acceptance of that offer. Contracts indicate the type and amount of payment for services or goods rendered. In the case of a legal promissory note, the contract will be shaped around the amount of money or capital loaned and the terms of repayment of the promissory note.
As with any contract, the promissory note will contain all the terms and conditions associated with the agreement that have been established between the two parties. It will detail the total amount of money or capital loaned, the interest rate that is charged, and the timeline for repayment. When all of these conditions are addressed in the promissory note details and it is signed by both parties, the promissory note meets all the elements of a legally binding contract.
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Post by batchoy on Feb 9, 2016 7:58:57 GMT
We are probably not the best people to review to promissory note, you really need proper legal advice but for the UK you will need three lots of advice, once for England and Wales, once for Scotland and once for Northern Ireland as they each have different legal systems and there are potential slightly different requirements for each jurisdiction. I know my Philippine loan agreements are vastly different to my England and Wales ones for basically the same type of loan.
Moving on to another point, whilst it is the FCA you need to talk to about credit Broking and AML and not HMRC, you still may want to talk to HMRC about your platform as they may want you to supply data on the loans made and those making them because tax can come into play even with private loans, and your platform very kindly creates a nice repository of records of such loans.
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Post by CircLender on Feb 9, 2016 8:21:20 GMT
We are probably not the best people to review to promissory note, you really need proper legal advice but for the UK you will need three lots of advice, once for England and Wales, once for Scotland and once for Northern Ireland as they each have different legal systems and there are potential slightly different requirements for each jurisdiction. I know my Philippine loan agreements are vastly different to my England and Wales ones for basically the same type of loan. Moving on to another point, whilst it is the FCA you need to talk to about credit Broking and AML and not HMRC, you still may want to talk to HMRC about your platform as they may want you to supply data on the loans made and those making them because tax can come into play even with private loans, and your platform very kindly creates a nice repository of records of such loans. ok, noted. I will be working on it very soon. My contacts in the UK and US is quite helpful. I tried to search the internet on UK p2p platforms and found this... There is a UK based fundraising site called flendr who is also involved in p2p lending business. We have some features in common on the crowdsourcing part. Will think that if they can operate in UK without a problem, then CricLender should not be having any issues introducing our services to the UK residences. Anyway, will try to talk to FCA & HMRC to make sure everything is in good order. Once again, thanks for the advice.
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Post by CircLender on Feb 9, 2016 9:32:35 GMT
batchoy, come back to your points on credit brokering and AML. Based on what I found here... www.fca.org.uk/firms/firm-types/consumer-credit/regulation/scope-regimesCircLender operates an online platform to facilitate FF loans and is not classified as a credit broker. There is a new regulated activity that covers the facilitation of lending and borrowing through electronic platforms (P2P platforms). This activity is called 'operating an electronic system in relation to lending'. Correct me if I am wrong. Also for the AML, after going thru www.gov.uk/guidance/money-laundering-regulations-who-needs-to-registerwww.fca.org.uk/about/what/enforcing/money-launderingI don't think there is a need for CircLender to register with FCA/HRMC since no funds are handled using the platform. CircLender only provide the platform to crowdsource, formalise and track repayment of FF loans. Borrowers and lenders will handle the fund transfer via cash, check or bank transfer. Appreciate if you can give me more guidance on these 2 matters. |
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james
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Post by james on Feb 15, 2016 9:36:56 GMT
Attached is a sample promissory note generated by CircLender. I hope to gather inputs on this piece of legal document from UK users' point of view. I try to keep the note simple because we are formalising FF loans. ... I do it with reference to online legal resources from US & UK. Which law firms wrote the text for each of the countries for which it will be used? were those law firms authorised to practice law in the country? If the plan is to also allow people in one country to lend to people in another country, are the law firms which wrote the text for those notes authorised to practice in both of the countries? I think that there are countries where providing legal agreements is a regulated activity under the practice of law laws. Is your business a registered law firm in such countries, or operating on behalf of such a licensed law firm? Your business appears to be trying to circumvent lending law by offering a legal service instead, contract preparation, as well as other administrative help. Not sure that's a good method because provision of legal services is also very heavily regulated.
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