blender
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Post by blender on May 25, 2017 7:28:43 GMT
This is good news for p2p and we should congratulate FC on it, which I do. If it happened a year ago, as intended, then I would be looking at an FC ISA for property loan parts. However, that time and opportunity has passed and my IFISA will likely be elsewhere. I believe that FC would like to make the ISA accounts Autobid only, but I doubt they are in a position to do that. For an FC ISA account you will need a separate email address just for the IFISA. That is how they will manage the limits.
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jayjay
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Post by jayjay on May 25, 2017 8:37:25 GMT
I believe that FC would like to make the ISA accounts Autobid only, but I doubt they are in a position to do that. For an FC ISA account you will need a separate email address just for the IFISA. That is how they will manage the limits. I imagine an FC IFISA as Autobid, 4.5% and a provision fund and it would be swamped (cf Ratesetter and Zopa). I do not believe an IFISA is attractive for high interest volatile platforms especially where there is significant platform risk. There you would need an IFISA that could be multi platform, enabling rapid switching and that does not exist. FC is in the 'big three' and the current IFISA regs favours them to provide something more automated, slow and steady. I have already stuck my £20k for 2016/17 in a S&S ISA.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on May 25, 2017 13:13:52 GMT
'It's been an exciting time at Funding Circle HQ, from announcing that we've received full authorisation from the UK regulator, the Financial Conduct Authority (FCA), to our victory at Ping Pong Fight Club last week.'
Tough call there which to put first in importance 
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Post by longjohn on May 25, 2017 13:21:07 GMT
I imagine an FC IFISA as Autobid, 4.5% and a provision fund and it would be swamped (cf Ratesetter and Zopa). <snip> I can't see why they'll not offer their headline rate currently 7.2% or remain as variable interest. For me the choice would be continue to earn 9%+ net and having to declare income to HMRC or earn 4.5% tax free and faf about with an IFISA. No brainer so far. At 7.2% I may be tempted and if I can continue my manual activities and 9% then I'm in! Mind you I've still got a few more years to go to transfer my pension lump sum from my trading account to my S&S ISA so I'd rather do that and simplify my dealings with HMRC there first. J
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blender
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Post by blender on May 25, 2017 15:15:31 GMT
I am sure the IFISA will be the normal '7.2%' before tax, because it will be the same loans to choose from. Though the '7.2%' is only the predicted return from the loans recently made, and future rates may go down due to market conditions.
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jayjay
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Post by jayjay on May 25, 2017 16:00:39 GMT
I imagine they will use the IFISA to go after new 'simpler' customers not the likes of you and me! Hence the opportunity to reduce rates for a simpler product and give some form of protection like their two major competitors. Perhaps you are right that would involve FC exercising too much imagination and they will just plod on with a slight tweak. Either way it is not for me.
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metoo
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Post by metoo on May 25, 2017 16:23:15 GMT
For an FC ISA account you will need a separate email address just for the IFISA. That is how they will manage the limits.
I'm sure I read a year ago that they had listened to people's responses on the second email address requirement, and the ISAs will be through the same login. Note the menu options that flash up "loading..." then quickly disappear when you click the FC menu.
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jayjay
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Post by jayjay on May 26, 2017 10:30:33 GMT
I just read Zopa are going to withdraw their 'Safeguard' so there is absolutely no incentive for FC to have a provision fund to make their IFISA attractive to new investors. So it is 'Business as usual' I agree. Too much money chasing too few decent borrowers.
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blender
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Post by blender on May 26, 2017 12:43:13 GMT
For an FC ISA account you will need a separate email address just for the IFISA. That is how they will manage the limits.
I'm sure I read a year ago that they had listened to people's responses on the second email address requirement, and the ISAs will be through the same login. Note the menu options that flash up "loading..." then quickly disappear when you click the FC menu. I don't remember that, but it is a hypothetical discussion because I would not touch the SME loans, even with a very long IFISA, and so after a while it would be useless for me. FC will remain a specialist in providing small quick loans to businesses which can provide neither a business plan nor security. Using money from consumer lenders who just want to do a bit better than savings. A Wonga for businesses.
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voss
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Post by voss on Jul 8, 2017 7:16:08 GMT
When I read this yesterday from Lendy (hang on, I am on the right board!), I realised why Fruitless Capital may be taking six months to introduce their Iffy: "The changes [requested by the FCA] include the way interest is paid during our post-loan term Tolerance Period, the launch of a new post-term bonus scheme, which is in addition to a new cashback offer that we are introducing on certain individual development tranches, and a new variable pre-funding model" - leaving aside that it is unlikely that the FCA are requiring all that (it's just Lendy's own plans), such changes would mean a massive software rewrite and therefore many months to implement.
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blender
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Post by blender on Jul 8, 2017 7:56:56 GMT
That may be a clue to what is happening at FC. They were ready to go with their ISA over a year ago, subject to FCA approval, and so we might well assume that those plans no longer fit their needs. It may be detailed FCA requirements, but it may also be the form in which they wish to offer it. I have long thought that they really want to limit the overheads associated with individual loans and lenders - they want investors who don't get involved with the detail. I have thought that at some time they would move to Autobid as the only investment method for new accounts. I would not be at all surprised if they decided to link the tax benefits of new ISA accounts with the compulsory use of Autobid and perhaps Autosale. In their place, that is what I would do - phasing out manual bidding, and those pesky questioners and complainers. That would require development.
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voss
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Post by voss on Jul 8, 2017 13:03:11 GMT
With Autobid and Autosell as the only buying and selling tools, FC would then look more like FCIF or even RS. It would have lost its USP.
As an aside, Autosell would need changing: Ive just tried it. Tried selling £1000. It wanted to sell 50 £20 parts in my oldest loan. I couldn't specify, for example, a particular loan such as one that I had doubts about (something that one might want to do if the other selling options are no longer available). And selling parts in only one loan is not good for diversity.
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metoo
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Post by metoo on Jul 8, 2017 18:02:47 GMT
I am taking FC at face value on the IFISA. They have given a credible reason for delaying the launch. Summer is indeed a slack time for new loans. FC expects extra lender demand once the ISA is available. I expect their IFISA to launch in the early autumn, with the platform operating as usual. Of course I could be wrong. I'm still in FC, but would leave if I couldn't buy and sell manually.
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voss
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Post by voss on Jul 8, 2017 19:34:14 GMT
Me too.
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blender
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Post by blender on Jul 9, 2017 15:45:39 GMT
I am taking FC at face value on the IFISA. They have given a credible reason for delaying the launch. Summer is indeed a slack time for new loans. FC expects extra lender demand once the ISA is available. I expect their IFISA to launch in the early autumn, with the platform operating as usual. Of course I could be wrong. I'm still in FC, but would leave if I couldn't buy and sell manually. Taking what FC says at face value! Where's the fun in that? I am looking for the platform rule which allows me to report a post for lacking cynicism.
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