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Post by fundingsecure on May 5, 2017 17:59:57 GMT
We have just emailed the latest Newsletter to all subscribers. Anyone else wishing to read the update can find it here: May NewsletterFundingSecure |
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dzo
Member of DD Central
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Post by dzo on May 5, 2017 18:06:18 GMT
Very disappointing news about the new 1% limit for premiums and discounts.
If this was to stop "inappropriate" trades, why not just stop people selling to themselves?
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mason
Member of DD Central
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Post by mason on May 5, 2017 18:14:30 GMT
Very disappointing news about the new 1% limit for premiums and discounts. If this was to stop "inappropriate" trades, why not just stop people selling to themselves? Any trade involving an ISA at an off-market price would need to be blocked to be in keeping with the ISA rules, so this is probably easier than having one set of rules for the ISA and another for the standard accounts. It also gets around the thorny issue of undisclosed accounts of spouses trading with each other.
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sqh
Member of DD Central
Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
Posts: 1,428
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Post by sqh on May 5, 2017 18:23:51 GMT
FS has become my main platform, rates are very good and I always knew I could sell if need be. Now that isn't certain. I think 2% would be better, especially for discounting.
EDIT: I actually, grabbed somebody's loan part that was available at 4% discount(nice loan as well), so it makes no sense to risk selling at a large discount.
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Liz
Member of DD Central
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Post by Liz on May 5, 2017 18:24:04 GMT
Very disappointing news about the new 1% limit for premiums and discounts. If this was to stop "inappropriate" trades, why not just stop people selling to themselves? Any trade involving an ISA at an off-market price would need to be blocked to be in keeping with the ISA rules, so this is probably easier than having one set of rules for the ISA and another for the standard accounts. It also gets around the thorny issue of undisclosed accounts of spouses trading with each other. It wasn't long ago that you had to offer discount above 1% to sell a large short dated loan. hmm
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mason
Member of DD Central
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Post by mason on May 5, 2017 18:49:40 GMT
Any trade involving an ISA at an off-market price would need to be blocked to be in keeping with the ISA rules, so this is probably easier than having one set of rules for the ISA and another for the standard accounts. It also gets around the thorny issue of undisclosed accounts of spouses trading with each other. It wasn't long ago that you had to offer discount above 1% to sell a large short dated loan. hmm Blimey, the biggest discount I've had to offer is 0.8%, though I don't doubt there would be some that wouldn't shift at that level. I think with many more tax free investors, the need to offer large discounts may be less than it was prior to the introduction of the ISA, but time will tell.
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dzo
Member of DD Central
Posts: 158
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Post by dzo on May 5, 2017 18:52:22 GMT
Very disappointing news about the new 1% limit for premiums and discounts. If this was to stop "inappropriate" trades, why not just stop people selling to themselves? Any trade involving an ISA at an off-market price would need to be blocked to be in keeping with the ISA rules, so this is probably easier than having one set of rules for the ISA and another for the standard accounts. It also gets around the thorny issue of undisclosed accounts of spouses trading with each other. It seems like a fudge to me. If the market price is (or would be) a 3% premium and you're selling to your ISA account at a 1% discount that's still problematic.
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stub8535
Member of DD Central
personal opinions only. Not qualified to advise on investment products.
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Post by stub8535 on May 5, 2017 18:59:57 GMT
Could pre notification of this change have been behind the very unusual trading on the secondary market today I wonder?
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sqh
Member of DD Central
Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
Posts: 1,428
Likes: 1,212
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Post by sqh on May 5, 2017 19:00:04 GMT
Any trade involving an ISA at an off-market price would need to be blocked to be in keeping with the ISA rules, so this is probably easier than having one set of rules for the ISA and another for the standard accounts. It also gets around the thorny issue of undisclosed accounts of spouses trading with each other. It seems like a fudge to me. If the market price is (or would be) a 3% premium and you're selling to your ISA account at a 1% discount that's still problematic. If somebody wants to risk selling their best loan parts at 1% discount, I say bring it on.
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mason
Member of DD Central
Posts: 666
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Post by mason on May 5, 2017 19:00:59 GMT
Any trade involving an ISA at an off-market price would need to be blocked to be in keeping with the ISA rules, so this is probably easier than having one set of rules for the ISA and another for the standard accounts. It also gets around the thorny issue of undisclosed accounts of spouses trading with each other. It seems like a fudge to me. If the market price is (or would be) a 3% premium and you're selling to your ISA account at a 1% discount that's still problematic. Any solution that retains the current mechanics of the SM is going to be a fudge, because what is considered off-market is highly subjective. Narrowing the range is the simplest solution, and I can't really blame FS for opting for something that is expedient. A better solution would be to have a more genuine market in which buyers and sellers are automatically matched with the best available bid/offer at a price equal or better than their offer/bid.
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mason
Member of DD Central
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Post by mason on May 5, 2017 19:03:11 GMT
It seems like a fudge to me. If the market price is (or would be) a 3% premium and you're selling to your ISA account at a 1% discount that's still problematic. If somebody wants to risk selling their best loan parts at 1% discount, I say bring it on. Even if those loan parts are available for fractions of a second while being traded between connected accounts? Or if it means anyone (connected with the seller or otherwise) who buys the loan within an ISA risks having their ISA voided?
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peteuk
Member of DD Central
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Post by peteuk on May 5, 2017 20:27:35 GMT
The euphoria of ifisa is among us but please be aware the loans page is still full of loans that take time to fill and are on there second time around i sugest FC concentrate on following up the defaults and the 182 day loans that are now at 420 that they wont default because it looks bad, this bubble may burst
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elliotn
Member of DD Central
Posts: 3,064
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Post by elliotn on May 6, 2017 3:13:13 GMT
It wasn't long ago that you had to offer discount above 1% to sell a large short dated loan. hmm Blimey, the biggest discount I've had to offer is 0.8%, though I don't doubt there would be some that wouldn't shift at that level. I think with many more tax free investors, the need to offer large discounts may be less than it was prior to the introduction of the ISA, but time will tell. I've only recently changed into buying from PM (burnt by overdue process). Our highest income earners piling into FSIFISA mean I am now sold out at -0.1%. SM is up 75% with ISA only available for part of the month, will be interesting to see the required discounts once they fill up (although prior year ISA provide a deep well). Does FS allow you to transfer then close current year subscription and move prior years? I wonder if this buying power might dry up a bit if MT follow up on requests in their 'Help - Too Big' tapping up. Ly might now be a bridge too far.
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Post by fundingsecure on May 8, 2017 14:39:43 GMT
Leopardcat,
An email has just been sent out to all investors to clarify the position.
FundingSecure
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acky
Posts: 481
Likes: 262
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Post by acky on May 8, 2017 15:06:33 GMT
I regard this as very bad news. It will substantially reduce the money I was planning to invest on the platform. It's important to me to know that I can sell out at short notice if I want to (this is the attraction of FS over other platforms such as Ly where I am running down my investment) - limiting the discount to 1% does not give me that comfort at all. When I started investing in FS a few weeks ago there were many loans where the market was at 1.25% discount and some were at 1.5%. Capping at 1% discount just means that the loans which go to the top of the list if the market is at 1% discount are those which were bought last (as these have the highest effective rate - so don't buy when a loan is listed - wait till its 90%+ funded!) FS has not offered a satisfactory explanation for what looks to me like a very bad move.
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