skippyonspeed
Some people think I'm a little bit crazy, but I know my mind's not hazy
Posts: 787 
Likes: 424
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Post by skippyonspeed on Dec 13, 2016 12:09:25 GMT
1. Platform failure 2. Where to put excess cash when the rates no longer are worth the risk 3. Heinz baked beans shortageI'm hoping the stock market will correct at just the right time to be able to transition from p2p, more into equities No loss, Tesco ones much nicer and cheaper!
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grahamg
Member of DD Central
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Post by grahamg on Dec 13, 2016 16:09:10 GMT
1. Platform failure 2. Where to put excess cash when the rates no longer are worth the risk 3. Heinz baked beans shortageI'm hoping the stock market will correct at just the right time to be able to transition from p2p, more into equities No loss, Tesco ones much nicer and cheaper! Have to agree Tesco beans are a much nicer taste
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kaya
Member of DD Central
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Post by kaya on Dec 13, 2016 17:00:20 GMT
The risk of platform failure obviously rates as the greatest fear, yet all platforms supposedly have in place arrangements to cover this eventuality and thus protect investors. Are all such arrangements considered to be inadequate then?
(I'd love to see a poll for voting on your platform failure favourites, but somehow doubt we'll be seeing that!)
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bigfoot12
Member of DD Central
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Post by bigfoot12 on Dec 13, 2016 17:33:34 GMT
2. Where to put excess cash ... First world problems...
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nick
Member of DD Central
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Post by nick on Dec 14, 2016 8:48:44 GMT
The risk of platform failure obviously rates as the greatest fear, yet all platforms supposedly have in place arrangements to cover this eventuality and thus protect investors. Are all such arrangements considered to be inadequate then? (I'd love to see a poll for voting on your platform failure favourites, but somehow doubt we'll be seeing that!) The FCA's interim P2P review raises several relevant concerns, specifically: - The plans some firms have for wind-down in the event of their failure are inadequate to
successfully run-off loan books to maturity. We are concerned that, in practice, wind-down plans may not work as expected,
and may be inadequate to enable a loan book to be administered to conclusion
in the event of platform failure. To help guard against this, we propose to
consult on strengthening the rules in this area. - We have challenged some firms to improve their client money handling standards.
www.fca.org.uk/publication/feedback/fs16-13.pdfMy own base assumption is that in the event of a platform failure there would be an immediate loss of liquidity and a 30%+ haircut in loan book value. Diversification across platforms is the main way I try to mitigate against this risk, but given the lack in the number of established platforms, my loan book remains fairly concentrated 
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