sqh
Member of DD Central
Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Jun 6, 2017 21:00:08 GMT
If provision funds have to be scrapped to achieve full FCA approval, it seems that the whole Assetz setup will crumble and only the original MLIA will survive. I have to say I do not understand why so many posters keep on saying that PFs have to go to get full FCA authorisation. Both Lending Works and Landbay, two of the first platforms to get FCA approval and now both offering IFISAs, both have PFs and Lending Works also provides an element of default insurance to boot. Surely it is more about transparency of the investment and how the PF is administered than the actual existence of the PF? If is was just down to the existence of the PF as some are suggesting then they would have all gone before achieving authorisation. EmoneyUnion (JustUs) also has a PF and got Full FCA regulation about 6 months ago. I also believe Assetz has often consulted with regulators to ensure their model adheres to FCA rules.
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Post by gidoppp01 on Jun 6, 2017 21:04:18 GMT
This does not guarantee diversification, as I tried it over a period of months. I found that each time I was being allocated a portion of the same loan, so after many deposits over a period I still had a near 20% exposure to one loan. When I checked the details it was certainly one I would have avoided at all costs. Therefore I decided to sell out completely, however this is not as simple as claimed. I was returned ~80% after 7 days, 95% after a month, and 99.9% after 3 months, but still have "shrapnel" left that is stuck, presumably due to a default. Therefore the claimed benefits do not, IMO, outweigh the significant drawbacks! There are no selling fees on Assetz Capital. I managed to sell £2000 in GGBA within 5 days. Getting 99.9% after 3 months + earning interest is not too bad, you cant do this with Zopa plus
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snowmobile
Member of DD Central
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Post by snowmobile on Jun 6, 2017 23:56:07 GMT
This does not guarantee diversification, as I tried it over a period of months. I found that each time I was being allocated a portion of the same loan, so after many deposits over a period I still had a near 20% exposure to one loan. When I checked the details it was certainly one I would have avoided at all costs. Therefore I decided to sell out completely, however this is not as simple as claimed. I was returned ~80% after 7 days, 95% after a month, and 99.9% after 3 months, but still have "shrapnel" left that is stuck, presumably due to a default. Therefore the claimed benefits do not, IMO, outweigh the significant drawbacks! There are no selling fees on Assetz Capital. I managed to sell £2000 in GGBA within 5 days. Getting 99.9% after 3 months + earning interest is not too bad, you cant do this with Zopa plus I was recently surprised at how easy it was to sell out of the GGBA and GEIA. I received 80% back within 3 days. It makes you wonder why people use the 30 day access account, even at the enhanced rate. I guess the liquidity was helped by the new funds being invested in the 30 day account.
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Post by df on Jun 7, 2017 1:16:30 GMT
Drip feeding is no guarantee of diversification. If a large amount of a loan that meets the GBBA criteria is sitting around in the secondary market (probably because people aren't desperately keen, or it is close to maturity) then the GBBA will continue to mop it up until the holding reaches 20% of the total value of your GBBA account (i.e. including allocated but uninvested cash). Unless you have a very high opinion of discretionary provision funds I would steer clear of the GBBA. Build up a portfolio in the MLIA instead. Takes longer, but you know where you stand. PF, even if it is discretionary, provides with some sense of security. Besides, many loans appearing on MLIA are at the same 7% as on GBBA and GEIA.
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Post by df on Jun 7, 2017 1:52:18 GMT
There are no selling fees on Assetz Capital. I managed to sell £2000 in GGBA within 5 days. Getting 99.9% after 3 months + earning interest is not too bad, you cant do this with Zopa plus I was recently surprised at how easy it was to sell out of the GGBA and GEIA. I received 80% back within 3 days. It makes you wonder why people use the 30 day access account, even at the enhanced rate. I guess the liquidity was helped by the new funds being invested in the 30 day account. Even without promotional rate, 4.25% is an attractive product for investors who don't have time to manage their investments and don't mind to wait one month to get their money back. It is very much like bank savings account with notice - GBBA is not in that category.
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shimself
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Post by shimself on Jun 7, 2017 8:34:17 GMT
Even without promotional rate, 4.25% is an attractive product for investors who don't have time to manage their investments and don't mind to wait one month to get their money back. It is very much like bank savings account with notice - GBBA is not in that category. Ooh crikey, it's like that today ok, but if ever sentiment changes or if AC has a bad run then it would be utterly different.
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snowmobile
Member of DD Central
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Post by snowmobile on Jun 7, 2017 9:01:43 GMT
I was recently surprised at how easy it was to sell out of the GGBA and GEIA. I received 80% back within 3 days. It makes you wonder why people use the 30 day access account, even at the enhanced rate. I guess the liquidity was helped by the new funds being invested in the 30 day account. Even without promotional rate, 4.25% is an attractive product for investors who don't have time to manage their investments and don't mind to wait one month to get their money back. It is very much like bank savings account with notice - GBBA is not in that category. I certainly wouldn't think of it as very much like a bank savings account. I'm sure this has been discussed elsewhere, but I can't believe FCA would be comfortable with a product which can be perceived as such. The 30 day access is only possible under normal market conditions, whatever that means. Both the GBBA and GEIA are hands off products at a much higher rate. If under normal market conditions liquidity can be achieved within 30 days using these accounts, then it makes more sense to me. However liquidity time is not known unless actually selling.
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