agent69
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Post by agent69 on Jul 4, 2016 18:45:33 GMT
Just had an email from TC stating
"As you know all of the major peer to peer platforms are in the process of applying for full authorisation by the FCA. As part of this process we have been reviewing our client money procedures and we need to introduce a few changes immediately that might affect you.
Unfortunately we will no longer be able to credit your lender account with notified deposits until cleared funds have been received"
I recall AC being a bit twitchy about letting people bid with money they didn't have, so will SS be forced to follow suit and only let people bid with money they actually have in their accounts.
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locutus
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Post by locutus on Jul 4, 2016 18:48:39 GMT
This sounds like TC acting on their interpretation of the rules rather than being asked by the FCA to do so. I think SS are fine with their own interpretation until instructed directly by the FCA to change it for being non-compliant.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Jul 4, 2016 18:50:00 GMT
Just had an email from TC stating
"As you know all of the major peer to peer platforms are in the process of applying for full authorisation by the FCA. As part of this process we have been reviewing our client money procedures and we need to introduce a few changes immediately that might affect you.
Unfortunately we will no longer be able to credit your lender account with notified deposits until cleared funds have been received" I recall AC being a bit twitchy about letting people bid with money they didn't have, so will SS be forced to follow suit and only let people bid with money they actually have in their accounts. So not pre-funding, but INPL. I've said before that I'd be surprised that the FCA would look kindly on investors being able to invest without funds. It would be sad to see it go, but I have personally come to the opinion lately (due to excessive gaming on the pre-funding and SM) that INPL needs to be overhauled or removed. Looks like the FCA might take the subject out of SS hands.
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tomtom
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Post by tomtom on Jul 4, 2016 20:33:19 GMT
Just had an email from TC stating
"As you know all of the major peer to peer platforms are in the process of applying for full authorisation by the FCA. As part of this process we have been reviewing our client money procedures and we need to introduce a few changes immediately that might affect you.
Unfortunately we will no longer be able to credit your lender account with notified deposits until cleared funds have been received" I recall AC being a bit twitchy about letting people bid with money they didn't have, so will SS be forced to follow suit and only let people bid with money they actually have in their accounts. So not pre-funding, but INPL. I've said before that I'd be surprised that the FCA would look kindly on investors being able to invest without funds. It would be sad to see it go, but I have personally come to the opinion lately (due to excessive gaming on the pre-funding and SM) that INPL needs to be overhauled or removed. Looks like the FCA might take the subject out of SS hands. What does INPL mean please?
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Jul 4, 2016 20:37:19 GMT
So not pre-funding, but INPL. I've said before that I'd be surprised that the FCA would look kindly on investors being able to invest without funds. It would be sad to see it go, but I have personally come to the opinion lately (due to excessive gaming on the pre-funding and SM) that INPL needs to be overhauled or removed. Looks like the FCA might take the subject out of SS hands. What does INPL mean please? nvest Now Pay Later  .
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Post by Deleted on Jul 4, 2016 21:39:55 GMT
I didn't receive this email and is a bit strange as I usually do receive all messages from SS.
Is the general opinion that the prefunding will be removed or simply conditioned on the pre-existence of sufficient funds?
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Jul 4, 2016 21:41:46 GMT
I didn't receive this email and is a bit strange as I usually do receive all messages from SS. Is the general opinion that the prefunding will be removed or simply conditioned on the pre-existence of sufficient funds? It was not an e-mail from SS, it was an e-mail from another platform (TC - ThinCats); but because the e-mail refers to their application to the FCA (which all P2P platforms are going through) it also possibly relates to SS, which is why the OP posted it here. I doubt pre-funding will be removed, and that is not what is discussed; INPL is at danger of being removed.
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Jul 4, 2016 21:42:04 GMT
I didn't receive this email and is a bit strange as I usually do receive all messages from SS. Is the general opinion that the prefunding will be removed or simply conditioned on the pre-existence of sufficient funds? The email referred to in the OP was from TC, not SS. Might be an idea to change the thread title to say INPL rather than prefunding. I would be glad to see the back of INPL.
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Liz
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Post by Liz on Jul 4, 2016 22:10:03 GMT
The problem with funding your TC account, is that it takes upto 2 working days for deposits to show up in your account.
If TC & SS are to go down this route, then they need to deposit funds into members' accounts sooner, otherwise by the time your funds show up in your account, the loan you want to invest in, is already full, then you need to withdraw funds, causing pointless admin.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Jul 4, 2016 22:32:50 GMT
Aiui, we are not actually lending to the borrower until the loan draws down. So the period pre-drawdown, call it the 'call for funds phase', where INPL sits, shouldn't be 'in danger' as the funds are not out the door yet, just sat there waiting for the deal to happen, with SS kindly covering the interest. That's how I've always thought about it anyway, have I got it wrong? What you say is true. However, if drawdown is completed the very next day (which has happened on several occasions with SS), then there will be investors who haven't sent funds to cover their investments before drawdown.
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Post by jonboy73 on Jul 5, 2016 3:05:15 GMT
surely the key phrase here is "credit your lender account" i.e. start paying you interest etc.
a second column of "pending investment funds" or similar would solve this, therefore you are not really "invested" until you fund it.
quicker crediting of funds by debit card would also help...
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Post by jackpease on Jul 5, 2016 6:29:14 GMT
Invest now pay later is one of the features i most like about SS - as they have tightened the rules recently and frequently grab parts back off people i am not sure how gaming is an issue any more? It is a huge display of trust in me as a customer that has the same feel as a smallholder's honesty box.
But what's the regulatory issue with INPL? Lenders are clearly not entering a contract or commitment with SS's INPL system - they are in effect reserving the money with 'cheque in the post'... If the money comes, fine, if the money doesn't come, the parts go back into the pot.
In what way could this possibly worry a regulator?
Jack P
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Post by GSV3MIaC on Jul 5, 2016 7:22:18 GMT
I would guess that the main worry is that the platform is carrying the risk if the money never shows up. I hope it is the platform, and not the SM seller who may have been paid for parts with imaginary funds.
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Jul 5, 2016 7:45:11 GMT
But what's the regulatory issue with INPL? Lenders are clearly not entering a contract or commitment with SS's INPL system - they are in effect reserving the money with 'cheque in the post'... If the money comes, fine, if the money doesn't come, the parts go back into the pot. In what way could this possibly worry a regulator? Jack P IIRC the Technical Director of a rival platform suggested a scenario in which an investor who had sent his money could lose out unfairly because of use of INPL by others. It's on this forum (not SS) somewhere but could take some finding.
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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 Jul 5, 2016 8:06:22 GMT
But what's the regulatory issue with INPL? Lenders are clearly not entering a contract or commitment with SS's INPL system - they are in effect reserving the money with 'cheque in the post'... If the money comes, fine, if the money doesn't come, the parts go back into the pot. In what way could this possibly worry a regulator? Jack P IIRC the Technical Director of a rival platform suggested a scenario in which an investor who had sent his money could lose out unfairly because of use of INPL by others. It's on this forum (not SS) somewhere but could take some finding. Some of the debate is here. p2pindependentforum.com/post/87321/thread
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