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Post by charles on Feb 20, 2017 7:43:05 GMT
Hi mnm , The FCA has some guidelines, which @filipkaradaghi has kindly reproduced for your convenience, and I believe that post the P2P/Crowdfunding review that the FCA released around Dec 2016, we can probably expect more regulation to come in 2017 to protect the interests of consumers (especially in the cases where all the risks and returns are pooled). But perhaps the better question to ask here is what types of assets and/or platforms should I invest in so that I am secured if the unthinkable happens. In my ever-so-slightly biased opinion, I think real estate crowdfunding platforms like ours, Property Crowd, offer a superior risk-reward profile by far. With us, for example, you're getting actual shares/bonds, your cash/investments are held in segregated accounts with independent custodians, everything is backed by a tangible asset (i.e. real estate). And if you're lending on a senior/first lien basis with a conservative LTV (e.g. 60% or less), chances are you will get your money back (with interest) in the event of a borrower default. I've written quite a number of articles explaining how real estate crowdfunding differs from the conventional P2P / Crowdfunding proposition in many important ways. Have a read - see link below. www.propertycrowd.com/high-yield-with-capital-preservation-asset-backed-debt-could-mean-having-your-cake-and-eating-it-too/
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Post by charles on Feb 21, 2017 15:19:52 GMT
If this has been dealt with somewhere else please re-direct me. If/when a P2P platform goes bust does anyone know how safe/efficient/seamless the (FSA required) “back up” company is? I would also add: If, for example, Property Crowd were to go out of business, our Bond investors would be completely undisturbed, and to my knowledge, we are the only platform that can say this with confidence because: 1. All securities and cash are held by the regulated and independent custodian (Gallium). Cash is held as segregated client money. 2. The deal SPV is under the control of custodian's Directors (not by us). 3. The loan deal is managed and serviced by the Principal Lender (not by us).
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Post by hnwlending on Mar 15, 2017 11:23:35 GMT
We've been through full FCA authroisation and the FCA were keen to understand that we had a workable solution in the case of bankruptcy or orderly wind-down and that client monies were sufficiently protected and organised such that they could be returned to investors within 24 hours in the event of platform failure. This was certainly, we understand from our compliance consultants, one of the key areas of FCA focus and may be why some of the other platforms are failing to get full authorisation
Happy to talk to anyone about this though
I've only just been made aware of your forum and it looks great, although I am completely new to forums to please excuse me if I'm not following the right etiquette!
I am the MD of HNW Lending Ltd. We are a fully FCA authorised firm (authorised in January 2017) and also have HMRC permission to offer IF ISAs and have flexible ISAs
We have been going for 3 years, have done over 150 loans, and have never lost a penny of interest or capital to date as all the loans we do are secured loans. Secured loans means first or second charge on property or taking an asset like a high value car or plane into a storage facility under our control
We are basically funded by a collection of wealthy individuals, with the average individual investor having over £100k invested in our loans. We do however allow investors to put a minimum of £5k per loan (or £10k per loan outside of the ISA). Investors choose which loans they wish to invest in and the rate investors earn ranges from about 7% to 15% depending on the risk of the loan - ie a low LTV (loan to value) first charge would pay lower interest than a high LTV second charge
My number is 07958 636 106 and email is ben@hnwlending.co.uk if you wanted to find out any more information so that you can update your post
Thanks
Ben
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