oldgrumpy
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Post by oldgrumpy on Dec 11, 2016 12:20:15 GMT
A recent article in the Guardian highlights that certain developments in the P2P industry are giving cause for concern to the FCA, implying that unnamed platforms are buying loans from others without informing lenders of the practice. BondMason (not named) specifically does this, but lenders are made fully aware of it at every stage. What dialogue is BM having at present with the FCA in regard to further regulatory impositions which may affect the platform? Do you think you will be required to list all the platform sources of your loan book, maybe with percentages of each in the whole book updated on a regular and frequent basis? uk.businessinsider.com/fca-peer-to-peer-p2p-lenders-buying-each-others-loans-2016-12 |
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Post by stevefindlay on Dec 11, 2016 16:58:08 GMT
We contributed to the current review, and have been in regular dialogue with the FCA over the last 2 years - covering our own business model (which is unique to us) as well as our observations with respect to P2P Lending generally (as we see more of the market, and in more detail, than any other participant).
The FCA are still getting to grips with the various operating models and practices that are in place. I think their biggest concerns at present are around potential Collective Investment Schemes (including Provision Funds) and Client Money Handling in the P2P market.
Regarding the article you mention - I think the FCA's perspective here is probably around potential mis-selling: a lender chooses a Platform based on its loans and credit team etc, and in this case, if the platform has a surplus of funds it places capital across other platforms (without the lender being aware that this is happening). I agree that this feels like a dubious practice.
We are the only platform that lends through many other platforms (and does not originate or manage P2P Borrowers ourselves). But this is very clear - it is our entire proposition!
So, although the they've not discussed this particular point with us, I'd be surprised if they cited any concerns with our model given how we market and describe the BondMason offering.
I have to admit though, we've not seen this activity on any of the platforms we've approved.
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rick24
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Post by rick24 on Jan 10, 2017 20:55:44 GMT
Any progress on the FCA approval?
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Post by sayyestocress on Jan 12, 2017 9:29:34 GMT
Any progress on the FCA approval? I'm keen to hear too. I wonder whether the approval decision has gone beyond the deadline for which the FCA have to pay a fine? I was interested to read "BondMason is in the process of refining the structure of its own Innovative Finance ISA" in one of the latest articles. I wonder whether this is due to the FCA review process?Hopefully we'll see something before the end of the financial year as BM makes the most sense to me for diversification, though there could be some horrendous cash drag on the platform if/when it launches with transferred in ISA allowances.
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Post by stevefindlay on Jan 12, 2017 15:45:19 GMT
We'd love to hear too! No response from the FCA yet to our various emails and voicemails in 2017. sayyestocress - The IF ISA structuring is sat with a different department within the FCA (not the approvals team) - so this shouldn't impact the timing of our overall application. And yes, the FCA have gone over the 12 month period... |
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rick24
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Post by rick24 on Jan 21, 2017 16:19:47 GMT
We'd love to hear too! No response from the FCA yet to our various emails and voicemails in 2017. sayyestocress - The IF ISA structuring is sat with a different department within the FCA (not the approvals team) - so this shouldn't impact the timing of our overall application. And yes, the FCA have gone over the 12 month period... I would be inclined to invest more when the approval comes in. I like BM. Good for "fire and forget" investment.
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Post by Deleted on Jan 21, 2017 16:40:32 GMT
We'd love to hear too! No response from the FCA yet to our various emails and voicemails in 2017. sayyestocress - The IF ISA structuring is sat with a different department within the FCA (not the approvals team) - so this shouldn't impact the timing of our overall application. And yes, the FCA have gone over the 12 month period... I would be inclined to invest more when the approval comes in. I like BM. Good for "fire and forget" investment. I've trialled Bondmason with 1k but with a marginal rate of tax of 60% I'm relying on the IFISA before enthusiastically depositing more! Perhaps it will be my 2017/18 ISA allowance??? Starting to consider existing IFISA providers for this yrs new money.
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Post by stevefindlay on Jan 21, 2017 19:13:12 GMT
I've trialled Bondmason with 1k but with a marginal rate of tax of 60% I'm relying on the IFISA before enthusiastically depositing more! Perhaps it will be my 2017/18 ISA allowance??? Starting to consider existing IFISA providers for this yrs new money. This is actually helpful - we've been trying to make the point to the FCA that we are losing clients (and potential clients) because of the time taken to process our FCA application. Here's a clear example of this.
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stub8535
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personal opinions only. Not qualified to advise on investment products.
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Post by stub8535 on Jan 21, 2017 19:30:37 GMT
I've trialled Bondmason with 1k but with a marginal rate of tax of 60% I'm relying on the IFISA before enthusiastically depositing more! Perhaps it will be my 2017/18 ISA allowance??? Starting to consider existing IFISA providers for this yrs new money. This is actually helpful - we've been trying to make the point to the FCA that we are losing clients (and potential clients) because of the time taken to process our FCA application. Here's a clear example of this. You can add 3 new p2p investors, Steve, that are waiting for your IFISA b4 adding this years remaking allowance funds of 20k in total. More to be deposited after tax year end.
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Post by Deleted on Jan 21, 2017 21:28:52 GMT
I've trialled Bondmason with 1k but with a marginal rate of tax of 60% I'm relying on the IFISA before enthusiastically depositing more! Perhaps it will be my 2017/18 ISA allowance??? Starting to consider existing IFISA providers for this yrs new money. This is actually helpful - we've been trying to make the point to the FCA that we are losing clients (and potential clients) because of the time taken to process our FCA application. Here's a clear example of this. Seems a very reasonable argument to make based on my own experience. My PSA is £500 so I'm trialling a few platforms while keeping my interest earned under this limit. Any further interest will be taxed at the marginal rate of 60% allowing for loss of personal tax allowance. Therefore any further deposits into Bondmason would be to earn approx 3% which just isn't worth the risk involved at all. I'd be very keen to deposit more into an IFISA with new ISA money or transfer of older ISA money. Having said that I'm keen to use this years allowance so will probably deposit with Lending Works if they launch soon as promised for 16/17 ISA allowance!
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Post by wickedxuk on Jan 21, 2017 21:44:54 GMT
This is actually helpful - we've been trying to make the point to the FCA that we are losing clients (and potential clients) because of the time taken to process our FCA application. Here's a clear example of this. You can add 3 new p2p investors, Steve, that are waiting for your IFISA b4 adding this years remaking allowance funds of 20k in total. More to be deposited after tax year end. I can honestly say if the target return remains 7% (with no cap) in the BM IFISA the reduced hassle of managing my loan book would probably see me use most of my and my wifes ISA allowance on BM. Though the rate would need to be 7% plus still. Otherwise I'm still willing to actively manage my loan book myself and would keep my BM pot at much smaller amounts.
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littonowl
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Post by littonowl on Jan 21, 2017 22:56:39 GMT
I'd be another who would add more funds to BM, probably via a cash ISA transfer. Furthermore I'd hope that when you get FCA authorisation, that it'd also be possible to transfer current portfolios into an IFISA wrapper without the need to sell up and re-enter the lending queue..? Do you think this likely/possible stevefindlay ? |
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stub8535
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personal opinions only. Not qualified to advise on investment products.
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Post by stub8535 on Jan 21, 2017 23:05:25 GMT
I hope that, just because an ISA wrapper is round the investment, Bondmason doesn't follow other sites and introduce exorbitant fees to cover administration of the wrapper, that mimics the stocks and shares dealers double charging. I am sure Steve has more integrity than this though but I would expect some clawback of admin fees.
Other p2p sites have gone down that route so my cash has stayed away.
3 to 6% isa wrapped or 7%-13% outside with money taken from and at tax year end put back to flexible cash ISA to keep the wrapper but get decent interest until a better product comes along. Which would you choose?
The currently available Isa, outside ones allowance I think, gives a 25% bonus when the money is taken to buy the first home. Only available if you have not had a property before. Muddying the waters, sorry, expanding the savings encouragement, comes the Lisa. This acts like a pension on top of your company one. Not available to my age group but it could be a way for some to legally delay taxation until their tax rates reduces.
So much choice. So little available professional advice unless you have high income or savings. I have found that some fa's are not interested unless one has over 250k.
And on top of all that we have the savings allowance of up to 1k interest withoit taxation for standard rate tax payers, £500 for 40% and 0 for higher rate.
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