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Post by Deleted on Aug 4, 2016 8:21:43 GMT
I'm glad the FCA is finally waking up to the complexity of some of these P2P products underneath the shiny veneer.
'Regulatory Arbitrage' is indeed a good way of putting it - some of these products are very bank-like/asset-manager-like/broker-like and yet are benefiting from a very light regulatory touch in comparison.
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Post by misotu on Aug 4, 2016 9:25:40 GMT
Thanks for the reply westonkev - the confirmation that there's no fundamental stumbling block is exactly the kind of info I was hoping for. Cheered me up no end until I read the other posters who have formed a different impression from the FCA information.
Very frustrating, I've lost so much interest making provision for this. On the one hand I am all for proper regulation and FCA scrutiny. But on the other, I already have a proportion of my savings committed to P2P so frankly all the delay does for me (and I suspect a lot of others) is cost me tax and lost interest because I'm trying to keep funds available to move over into the IFISA rather than re-investing in 5 year.
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jonah
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Post by jonah on Aug 4, 2016 20:53:41 GMT
Yup. That cash in rolling won't be there a month after the ISA goes live....
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Post by westonkevRS on Aug 5, 2016 4:45:16 GMT
Thanks for the reply westonkev - the confirmation that there's no fundamental stumbling block is exactly the kind of info I was hoping for. Cheered me up no end until I read the other posters who have formed a different impression from the FCA information. Very frustrating, I've lost so much interest making provision for this. On the one hand I am all for proper regulation and FCA scrutiny. But on the other, I already have a proportion of my savings committed to P2P so frankly all the delay does for me (and I suspect a lot of others) is cost me tax and lost interest because I'm trying to keep funds available to move over into the IFISA rather than re-investing in 5 year. Hi @mosotu, If you're feeling frustrated, imagine for RateSetter. Given this huge endorsement and opportunity by one government agency, to be delayed by another. And we'd love to communicate more, but we simply don't have any information. We are making some changes as requested by the FCA, which are similar to the other major platforms. But these are not "show-stoppers". Coincidentally I deal with a lot of credit brokers, and there authorisation process is taking much longer than they envisioned for a relatively simple role. I also know of two applications that have been delayed due to FCA staff departures. So I don't know if resourcing is an issue, but I suspect it is. My recommendation, don't make a decision on potential ISA IF being available this financial year. It could be, but there is every possibility it will not. And even if it was, there is a danger that a depression on rates would outweigh any benefit instead of lending today. But this is all largely guesswork, you should make you own determination. This post is not advice or guidance.Kevin.
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Post by dualinvestor on Aug 5, 2016 7:01:06 GMT
Thanks for the reply westonkev - the confirmation that there's no fundamental stumbling block is exactly the kind of info I was hoping for. Cheered me up no end until I read the other posters who have formed a different impression from the FCA information. Very frustrating, I've lost so much interest making provision for this. On the one hand I am all for proper regulation and FCA scrutiny. But on the other, I already have a proportion of my savings committed to P2P so frankly all the delay does for me (and I suspect a lot of others) is cost me tax and lost interest because I'm trying to keep funds available to move over into the IFISA rather than re-investing in 5 year. On the assumption that the IFISA will eventually become viable and Ratesetter and the other platforms offer them (whether in this tax year or at sometime in the future) you should consider the following question. Will substantially all the money invested in the ISA be "new" money to the platform? If you believe the answer to that is yes and that it is going to be substantial, then by simple demand and supply, it is likely that rates for investors will be under pressure on the assumption that there is unlikely to be a proportionate increase in demand. Therefore to forgo investment opportunity now on the uncertain, and ideterminate timing, hope of, possibly lower return, tax free income later may not be the best decision. Not advice etc etc
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jonah
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Post by jonah on Aug 5, 2016 20:11:18 GMT
Will the drop be more than you marginal tax rate though? I have held of RS 5year since April to avoid the tax paperwork in c5 years time, but also I can take a drop in the RS rate but still be OK after tax, if I'm in an ISA.
of course if the rates REALLY plummet...
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Post by dualinvestor on Aug 6, 2016 7:17:17 GMT
Will the drop be more than you marginal tax rate though? I have held of RS 5year since April to avoid the tax paperwork in c5 years time, but also I can take a drop in the RS rate but still be OK after tax, if I'm in an ISA. of course if the rates REALLY plummet... That's something we will only know after the ISAs become "live," I suspect Zopa and RS have conducted some research into the likely effects but I don't know whether they will share it I don't think it will have much affect on the "property" sites. What I can say, and there is quite a lot of discussion on the thread about it, the 5 year RS rate does appear to be under some pressure already.
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agent69
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Post by agent69 on Aug 6, 2016 8:01:21 GMT
I do wish that somebody would change the title of this thread (maybe by the addition of the words 'not yet'.
Every time I look at the main RS page I see 'RS ISA announced', and when I rush to see how to apply I get disappointed.
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Post by WestonKevTMP on Oct 16, 2017 23:00:29 GMT
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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 Oct 17, 2017 0:03:00 GMT
Have you tried communicating through the medium of contemporary dance? Might be less subtle ;-)
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jonah
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Post by jonah on Oct 17, 2017 5:35:45 GMT
Have you tried communicating through the medium of contemporary dance? Might be less subtle ;-) I’d like to congratulate RS via their forum rep for successfully getting FCA authorisation. Oh wait...
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Post by WestonKevTMP on Oct 17, 2017 7:44:30 GMT
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