Immediate Access to your cash and the Hidden Features of QAA

I started replying to khampson yesterday, then deleted the reply as I realised that I did not in fact know the answer. However, regarding the QAA and 30DAA, I believe that these are in fact the same pot of money with just the interest rate paid and notice period for access differentiating them for the investors. Any money you put into these is just added to the pot. The effect is that you do not own individual loans, just a piece of the pot, or at least that seems to be the effect. You can withdraw provided there is sufficient cash in the pot, or it can sell loans to release enough cash.

I suspect that you are correct. The higher proportion of invested funds vs cash buffer that would be allowed for by money being invested via 30DAA rather than QAA, would allow the higher rate of interest paid to investors.

It still smarts a bit that new investors via the Money Supermarket (IIRC) get a higher rate here, but that is a different question.

There's no question that more investors buying up more of the loan parts sitting on the SM would help liquidity overall, but it might not make any difference to the QAA/30DAA.  That's because, AIUI, those accounts have priority when it comes to SM sales.  (IIRC, Chris has told us that.) 

The priority might not be absolute -- as in if those accounts are trying to sell then 100% of buying requests would be assigned to those accounts -- but any priority would help QAA/30DAA liquidity.  (If there's £100k of a loan for sale, and £1k of that is yours and none is from the QAA/30DAA, then AIUI, you'd expect that 1% of any purchases would come from your parts.  If there were £1k of parts being sold by the QAA/30DAA then it might be the case that, say, 30% -- I've pulled a number out of the air as an example -- of the purchases would come from those accounts' parts and the other 70% would come from accounts like yours.)

If a loan sits with £100k of parts for sale for a long time, we have no way to know whether the parts just aren't being bought, or whether there are plenty of parts being bought but an equal number of parts being added to those offered for sale.  For loans where there's a reasonable amount of purchasing/selling activity, it might not take much of a priority boost to allow the QAA/30DAA to sell whatever parts they want to dispose of reasonably quickly.

Is a licence not required in order to trade individual loans on behalf of lenders or do exemptions apply to peer2peer platforms? 

I know that only hedge funds registered in exotic places enjoy the freedom of limited disclosure but even their managers need some sort of licences to operate and be able to actually trade investments.

If only they could get funds invested quicker. nearly a month with no interest reduces the headline rate considerably, particularly when a loan repays early.

Maybe there was an early repayment of a loan?