Steerpike
Member of DD Central
Posts: 1,977 
Likes: 1,687
|
Post by Steerpike on May 15, 2017 20:16:41 GMT
To be fair, it is clear that the contact is made using email via their site. So no one is forcing anyone to use the secondary market. I do agree that an on platform SM would be much better. IIRC the buyers don't get the seller's email unless the seller replies. I'm not in disagreement over whether it's clear or not - I know it's made clear on their site, and I know that no one is "forced" to use the secondary market - that's not my point - my point was that for those investors like me who want to sell on the secondary market but who don't want our email addresses made available to other investors, we're essentially precluded from using Abundance's secondary market. I'm not aware of any other platform that forces investors wanting to sell their loan parts on a secondary market to have to engage in direct off-platform personal email correspondence with other investors. I really hope abundance will take note and work to address this so that we can all use the secondary market without divulging our personal information to other investors. Did you ask Adundance if they would make a transfer on your behalf without the need for you to divulge your email address to the other party?
|
|
|
|
Post by abundance on May 16, 2017 15:23:46 GMT
To greatmarko , and littonowl who asked the same question on another thread: We would like to bring more of the process of concluding a trade on the Abundance marketplace on to the platform but there are regulatory restrictions within our current permissions that requires the trade agreement itself to be concluded off the platform. This is why the buyer and seller must connect by email to conclude the trade. You can only place a bid on the marketplace if you have passed our identity check process, and the email address for a bidder is only provided if the seller chooses to connect with a particular bidder (similar the seller's email address is only provider to the bidder they choose to connect with). Tom |
|
greatmarko
Member of DD Central
Posts: 343
Likes: 373
|
Post by greatmarko on May 16, 2017 16:22:11 GMT
To greatmarko , and @leopardcat who asked the same question on another thread: We would like to bring more of the process of concluding a trade on the Abundance marketplace on to the platform but there are regulatory restrictions within our current permissions that requires the trade agreement itself to be concluded off the platform. This is why the buyer and seller must connect by email to conclude the trade. You can only place a bid on the marketplace if you have passed our identity check process, and the email address for a bidder is only provided if the seller chooses to connect with a particular bidder (similar the seller's email address is only provider to the bidder they choose to connect with). Tom Thanks for your reply Tom... but I'm curious as to your "regulatory restrictions"? You're regulated by the FCA - like numerous other P2P lending platforms - yet no other platform is restricted to forcing secondary market transactions to take place "off platform"? Please can you elaborate on why your "regulatory restrictions" are any different?
|
|
treeman
Member of DD Central
Posts: 1,026
Likes: 557
|
Post by treeman on May 16, 2017 16:44:05 GMT
Now I am confused! I thought all p2p interest was paid gross now as we all have a £1000 (or £500 for higher rate tax payers) tax free allowance for interest.  Aye, the info about 20% automatic Tax deduction is tucked away within the Debenture prospectus, I'll not be investing in this loan because of this as any interest to be reclaimed on a few hundred quid would not be worth the admin effort. Better deals elsewhere for my money, 9.6% just doesn't cut it and neither does a poor security offering. Separate to to the irritating Tax deduction issue This funding request will in essence be providing the start-up capital in what will become a highly Geared SME Business. The lack of Physical Assets as integral to any lender Security package worries me, I have encountered the same elsewhere (with far smaller sums of lender capital) in the p2p SME lending environment to the eternal detriment of lenders who's funds have entered a default position... <SNIP for brevity> I asked Abundance via email about the with-holding tax on G**C and received a comprehensive reply from Tom. A (slightly) abbreviated version which may be of interest to others: We will be updating the FAQs section shortly with the below answer, as well as some information on reclaiming tax:
Current rules from HMRC require that all companies issuing debentures or bonds must withhold a proportion of interest payments equivalent to the basic rate of income tax (currently 20%) and pay this to HMRC directly. Previously Abundance Investment had operated under an exemption, as the majority of our customers are small investors.
Therefore, for any investment you make after 6 April 2017, 20% of your interest payments on Abundance will be deducted and paid to HMRC directly.
Any investment issued before 6 April 2017 currently pays Cash Returns gross with no tax withheld and will continue to do so until further notice. We are currently in discussions with HMRC on how best to implement withholding tax on these investments and will update Abundance members if this is the case.
No tax is deducted for Cash Returns from a Variable Return Debenture as your return is treated as a dividend, not interest.
Your G**C S******s interest payments are only subject to withholding tax at the point they are paid, so the tax withheld will only be in relation to the amount actually paid at that point so not including the rolled up amount which will only have tax withheld when it is paid at the end of the investment term.
When tax is withheld we will show this on your Tax Statement in your Abundance account so you can see how much interest you have received gross and net so you can claim back any tax if you are eligible to do so.
|
|
|
|
Post by abundance on May 17, 2017 9:52:19 GMT
To greatmarko , and @leopardcat who asked the same question on another thread: We would like to bring more of the process of concluding a trade on the Abundance marketplace on to the platform but there are regulatory restrictions within our current permissions that requires the trade agreement itself to be concluded off the platform. This is why the buyer and seller must connect by email to conclude the trade. You can only place a bid on the marketplace if you have passed our identity check process, and the email address for a bidder is only provided if the seller chooses to connect with a particular bidder (similar the seller's email address is only provider to the bidder they choose to connect with). Tom Thanks for your reply Tom... but I'm curious as to your "regulatory restrictions"? You're regulated by the FCA - like numerous other P2P lending platforms - yet no other platform is restricted to forcing secondary market transactions to take place "off platform"? Please can you elaborate on why your "regulatory restrictions" are any different? Abundance is regulated differently to P2P lending platforms and as such we are covered under different rules and regulations. Abundance is authorised and regulated by the FCA as an 'investment based crowdfunding' platform, while P2P lending platforms who have their authorisation or are currently operating under interim permissions are regulated as a 'loan based crowdfunding' platform. The difference is related to the type of investment product we offer - debt-based securities (which is what Abundance offers) are regulated differently to loans (which is what P2P lending platforms offer), and this is the reason for the difference in how our marketplace operates.
|
|
