Associate
- Joined
- 15 Oct 2015
- Posts
- 1,480
Raymond, can I send you a message on Trust?
P2P Investing
- Thread starter snappyfish
- Start date
Caporegime
Sure.
Suitably prescient
Hopefully won't be as messy as the Collateral administration. FCA wanting to be seen to be doing something - https://www.fca.org.uk/news/press-releases/fca-confirms-new-rules-p2p-platforms
Anyone not understand the meaning of "capital at risk"?
Don
Yeah I seen that in the news, I'm not sure how they'll police the "maximum of 10% of investable assets" for customers though.
Soldato
Similar controls have been in place for years for SIPP operators. The business is held to account for implementing them.
I thought that had changed and credit card companies have to clear the balance from the highest interest rate down to stop that from happening.
Soldato
Anyone have any investments in RateSetter? Logged on and checked account?
Soldato
Looks like they’re currently under maintenance
Soldato
Something has definitely gone awry. members.ratestter.com was showing the default install IIS page for a while! Perhaps their dB has gone pop. The main concern was when I could get to the dashboard, it was showing zero on loan and 37 pence in holding!
Soldato
Soldato
It is and those account amounts are back to expected levels!
Associate
- Joined
- 15 Jun 2009
- Posts
- 2,494
My ratesetter still hasn't quite got back to normal. Have a loan that's showing as contract date 01/01/0001 and doesn't have any repayments. Have emailed support and they're apparently looking in to it.
MONEYTHING ANNOUNCEMENT
06/12/2019
Important Announcement: MoneyThing in orderly wind-down
Summary
We have taken the decision to place MoneyThing into orderly wind-down and we are no longer taking any new investments or new customers.
We have found it is increasingly difficult to compete in the current market conditions and we expect there is a tougher economic environment to come.
During wind-down the business will continue to be managed and administered by the existing directors and we will aim to conclude the wind-down within 12 months and ensure the safe return of funds.
We have provided detailed information below why we have taken this decision and how it affects our lender customers.
We would like to thank all of our lenders for their support over the past few years. We made a commitment to lenders to provide a service and we would like to reassure lenders that that commitment will continue until the wind-down has been completed.
We have not been able to make MoneyThing a success. We will however aim to exit the market quietly with minimum disruption to our customers and the industry as a whole.
Results to Date
Why we have decided to wind-down
Over the past few years there have been significant changes in the lending markets in the UK. The huge influx of institutional capital into the market has caused a reduction in lending rates, which is good for borrowers, but not for lenders.
The current economic uncertainty and likely future uncertainty means that there are less potential borrowers committing to projects and growth in borrowing is slowing. This means there is greater competition for borrowers and this places increased pressure on lenders to further reduce rates and perhaps to relax risk criteria or accept lower margins.
More recently the collapse of Lendy and then Funding Secure has had a big impact on lender confidence. Having spoken with a number of our lenders in recent weeks, it is clear that while the vast majority remain confident in MoneyThing as a platform, most also expect to reduce their investments across P2P or to continue to lend at a much lower level.
As a small, self-select P2P platform entirely funded by retail money, we cannot be certain that we can fund new loans with the current low level of lender confidence. As a result, it has become increasingly difficult for us to compete and we expect those market conditions to continue.
As such we have taken the decision to wind-down.
What this means for lenders
Our lenders will know from our previous communications that we took the decision to wind-down our old loan book some time ago and we have been working towards returning lender funds for some time.
Our plans to move into lower risk-return markets have not been successful for the reasons stated above and so we have taken the decision to continue to wind-down the old loan book and not replace it with new loans.
This means in practical terms, not much will change from a lender perspective. We will continue to manage the existing loan book in the same way and return lender funds as and when loans are repaid. There will be slight changes to the level of service provided to lenders to take into account the reduced team.
Our aim will be to wind-down the remaining loan book within a 12 month timeframe. We will be working with the existing borrowers to arrange to bring outstanding loans to a conclusion as quickly as possible, adhering to the existing contractual terms.
FAQ’s
We have provided some FAQ’s below to answer specific service questions. If you have any further questions, please email [email protected].
Is the FCA aware that MoneyThing is in wind-down?
The FCA is aware that we have taken the decision to wind-down the business. We have asked the FCA to place voluntary restrictions on our permissions. This effectively prevents us from accepting new customers or taking any new investments (including on the secondary market). This is a sensible step and simply ratifies the steps we are taking operationally anyway during wind-down. Lenders may see this restriction on the FCA website over the next few days.
Is MoneyThing still regulated?
Yes. We are still regulated and will retain our permissions as a regulated firm until our wind-down has been completed. During this time, we will continue to report to the FCA and fulfil our regulatory obligations.
We will remain committed to treating all customers fairly.
What happens to my uninvested funds in the client money account?
Uninvested lender funds are held in a segregated client money account that is reconciled to the penny each day. These uninvested funds are covered by FSCS protection in the event that the holding bank fails.
Client money remains entirely separate from MoneyThing’s own business funds. We comply with all rules that govern the safekeeping of client money and our last external audit was carried out in July (to the period ending March 19) and the audit highlighted no issues. We internally reconcile balances every day and as at today’s date all balances are correct and in order.
However, there is no purpose in keeping large uninvested fund balances in the client money account since there will be no new loans to fund. We recommend that lenders request to withdraw the available balances to their own accounts. We usually have between £600,000 and £1000,000 in our client account as uninvested funds at any one time. Following the announcement of our wind-down, we expect (and welcome) an influx of withdrawal requests. This may take us slightly longer to process than usual as all payments are processed manually. A slight delay should not be a cause for concern and we will process withdrawal requests as soon as possible.
As we make payments to lender accounts over the coming months to settle interest and capital as and when it is repaid by borrowers, we recommend that lenders make regular withdrawals and keep their uninvested fund balances to a minimum.
Please note that during wind-down we will continue to have a minimum withdrawal amount of £10, except for the last transaction to close your MoneyThing account. This is in place to help us to manage our operational and bank costs. If any lender has concerns about keeping a minimum balance and would like to withdraw less than £10, this can be arranged by exception and a processing charge of £1 per transaction will be applied.
If you are an IFISA customer, please be aware that the existing IFISA rules do still apply and you may need to consider this before withdrawing funds. Please see the IFISA section below for further information.
Will my uninvested funds be returned to me automatically?
No, we will be following the same operational process for withdrawals during wind down which means that lenders should request a withdrawal by logging into their MoneyThing account.
What will happen to deposits?
We will not be accepting any further deposits from lenders and any funds received will be returned.
What will happen to the loans I have invested in?
Your loans will continue to be managed by us in the same way under the same contractual terms. We will continue to provide monthly updates, except on defaulted loans where the updates will be less frequent.
Interest will be applied to your account on receipt and capital will be returned to you as it is received from the borrowers.
What will happen to the loans in recovery?
There is a strategy in place with each loan in recovery and we have appointed administrators or receivers for each loan. We will continue to work with them and try to secure the best outcome for lenders. It may not be possible to secure a full capital and interest recovery and as each recovery reaches its conclusion, we will crystallise any resulting losses. We will however continue to work towards minimising losses wherever possible. Lenders will be able to read updates on recoveries on the platform in the usual way.
Will I be able to sell my investments on the secondary market?
No. The secondary market will not be available during wind-down and we will not be accepting any new investments.
Will my lender account be closed?
We will close each lender account at the point where it has no investments and no uninvested funds.
If you want to request to close your account, please follow the procedure as set out in our T&C’s. You cannot close your account until your live investments have reached a conclusion and you no longer have any balance in your account.
Any dormant accounts where there are no live investments, but some uninvested funds will be closed by us and uninvested funds returned.
Once your account has been closed you will not be able to access the platform.
I have an IFISA with MoneyThing, how will this be affected?
We will not be accepting any new transfers in of ISA money.
As we are managing our own wind-down, we still have the same regulatory permissions and we are still an ISA Manager. As such there are no changes to the management of your existing IFISA. You may have the option to transfer out your IFISA investments from MoneyThing to another provider and you should refer to the IFIFA rules that apply to you and take advice if appropriate.
As your IFISA loans are illiquid, it may not be possible to do this immediately and you may need to wait until your loans have repaid. If you have a current year subscription, it may not be possible to transfer out only part of your subscription.
If you have any specific IFISA questions, please email [email protected].
Does MoneyThing have a living will in place?
Yes, it is part of the FCA rules to have a ‘living will’ or wind-down policy in place and we are putting this into effect now. There are a number of options available to firms to carry out an orderly wind-down. We elected to manage our own wind down from the proceeds of our residual loan book. We informed lenders of this in the Lender Terms and Conditions.
We decided to manage our own wind-down because we believe we are best placed to manage the remaining loans. Appointing another agent to run the loan book is likely to add a layer of additional cost and reduce returns to lenders. We have always taken recoveries very seriously and we want to be in control of making the best decisions for our lenders.
Has MoneyThing appointed an administrator over the company?
No. We are continuing to operate using our residual income from the existing loan book. We are reducing our operational expenses so that we can continue to operate an orderly wind-down.
There are new regulations for P2P platforms coming into effect on the 9th December. Will MoneyThing comply with them?
Yes, we will continue to comply with all regulatory requirements that apply to us, although some will not be relevant to us in wind-down. The focus of the new regulation can be summarised under the following headings:
As members of TISA and the UKCFA we have been party to the industry discussions around the new regulations. We have spent considerable time, together with our compliance advisory firm, ensuring that we are well prepared. We already had a risk framework, governance process and wind down plan in place, however these have all been reviewed and updated over the past few months.
However, the changes applicable to accepting new investments are not relevant to us. We will not be accepting any new investments and so the appropriateness testing and customer classification will not be applicable to us. We will also no longer carry out any financial promotion activity.
Will I still be able to contact MoneyThing?
Yes. Lender support will continue as before, although we will be operating with a reduced team. Our main form of contact remains email at [email protected]. If you can’t get through to us on the phone immediately, please leave a message and we will call you back.
What will happen to TheThings?
We will be operating with a reduced team during wind down and we sadly have to say goodbye to our great team from the end of January. All our people have been exceptional, hard-working and dedicated people. We wish them the very best of luck in their future careers.
During wind-down Ed Pearce will be responsible for day to day operations and we will continue to have technical support from Sean Gao. Oli Pearce will continue as finance manager on a part-time basis and Sophie Pearce will continue as MD with overall responsibility. David Monro will continue as Director and Compliance Officer.
06/12/2019
Important Announcement: MoneyThing in orderly wind-down
Summary
We have taken the decision to place MoneyThing into orderly wind-down and we are no longer taking any new investments or new customers.
We have found it is increasingly difficult to compete in the current market conditions and we expect there is a tougher economic environment to come.
During wind-down the business will continue to be managed and administered by the existing directors and we will aim to conclude the wind-down within 12 months and ensure the safe return of funds.
We have provided detailed information below why we have taken this decision and how it affects our lender customers.
We would like to thank all of our lenders for their support over the past few years. We made a commitment to lenders to provide a service and we would like to reassure lenders that that commitment will continue until the wind-down has been completed.
We have not been able to make MoneyThing a success. We will however aim to exit the market quietly with minimum disruption to our customers and the industry as a whole.
Results to Date
- £92.2m total lending
- £71.9m capital repaid
- £8.1m interest paid
- £20.3m outstanding loans
- £55.4m traded on the secondary market
Why we have decided to wind-down
Over the past few years there have been significant changes in the lending markets in the UK. The huge influx of institutional capital into the market has caused a reduction in lending rates, which is good for borrowers, but not for lenders.
The current economic uncertainty and likely future uncertainty means that there are less potential borrowers committing to projects and growth in borrowing is slowing. This means there is greater competition for borrowers and this places increased pressure on lenders to further reduce rates and perhaps to relax risk criteria or accept lower margins.
More recently the collapse of Lendy and then Funding Secure has had a big impact on lender confidence. Having spoken with a number of our lenders in recent weeks, it is clear that while the vast majority remain confident in MoneyThing as a platform, most also expect to reduce their investments across P2P or to continue to lend at a much lower level.
As a small, self-select P2P platform entirely funded by retail money, we cannot be certain that we can fund new loans with the current low level of lender confidence. As a result, it has become increasingly difficult for us to compete and we expect those market conditions to continue.
As such we have taken the decision to wind-down.
What this means for lenders
Our lenders will know from our previous communications that we took the decision to wind-down our old loan book some time ago and we have been working towards returning lender funds for some time.
Our plans to move into lower risk-return markets have not been successful for the reasons stated above and so we have taken the decision to continue to wind-down the old loan book and not replace it with new loans.
This means in practical terms, not much will change from a lender perspective. We will continue to manage the existing loan book in the same way and return lender funds as and when loans are repaid. There will be slight changes to the level of service provided to lenders to take into account the reduced team.
Our aim will be to wind-down the remaining loan book within a 12 month timeframe. We will be working with the existing borrowers to arrange to bring outstanding loans to a conclusion as quickly as possible, adhering to the existing contractual terms.
FAQ’s
We have provided some FAQ’s below to answer specific service questions. If you have any further questions, please email [email protected].
Is the FCA aware that MoneyThing is in wind-down?
The FCA is aware that we have taken the decision to wind-down the business. We have asked the FCA to place voluntary restrictions on our permissions. This effectively prevents us from accepting new customers or taking any new investments (including on the secondary market). This is a sensible step and simply ratifies the steps we are taking operationally anyway during wind-down. Lenders may see this restriction on the FCA website over the next few days.
Is MoneyThing still regulated?
Yes. We are still regulated and will retain our permissions as a regulated firm until our wind-down has been completed. During this time, we will continue to report to the FCA and fulfil our regulatory obligations.
We will remain committed to treating all customers fairly.
What happens to my uninvested funds in the client money account?
Uninvested lender funds are held in a segregated client money account that is reconciled to the penny each day. These uninvested funds are covered by FSCS protection in the event that the holding bank fails.
Client money remains entirely separate from MoneyThing’s own business funds. We comply with all rules that govern the safekeeping of client money and our last external audit was carried out in July (to the period ending March 19) and the audit highlighted no issues. We internally reconcile balances every day and as at today’s date all balances are correct and in order.
However, there is no purpose in keeping large uninvested fund balances in the client money account since there will be no new loans to fund. We recommend that lenders request to withdraw the available balances to their own accounts. We usually have between £600,000 and £1000,000 in our client account as uninvested funds at any one time. Following the announcement of our wind-down, we expect (and welcome) an influx of withdrawal requests. This may take us slightly longer to process than usual as all payments are processed manually. A slight delay should not be a cause for concern and we will process withdrawal requests as soon as possible.
As we make payments to lender accounts over the coming months to settle interest and capital as and when it is repaid by borrowers, we recommend that lenders make regular withdrawals and keep their uninvested fund balances to a minimum.
Please note that during wind-down we will continue to have a minimum withdrawal amount of £10, except for the last transaction to close your MoneyThing account. This is in place to help us to manage our operational and bank costs. If any lender has concerns about keeping a minimum balance and would like to withdraw less than £10, this can be arranged by exception and a processing charge of £1 per transaction will be applied.
If you are an IFISA customer, please be aware that the existing IFISA rules do still apply and you may need to consider this before withdrawing funds. Please see the IFISA section below for further information.
Will my uninvested funds be returned to me automatically?
No, we will be following the same operational process for withdrawals during wind down which means that lenders should request a withdrawal by logging into their MoneyThing account.
What will happen to deposits?
We will not be accepting any further deposits from lenders and any funds received will be returned.
What will happen to the loans I have invested in?
Your loans will continue to be managed by us in the same way under the same contractual terms. We will continue to provide monthly updates, except on defaulted loans where the updates will be less frequent.
Interest will be applied to your account on receipt and capital will be returned to you as it is received from the borrowers.
What will happen to the loans in recovery?
There is a strategy in place with each loan in recovery and we have appointed administrators or receivers for each loan. We will continue to work with them and try to secure the best outcome for lenders. It may not be possible to secure a full capital and interest recovery and as each recovery reaches its conclusion, we will crystallise any resulting losses. We will however continue to work towards minimising losses wherever possible. Lenders will be able to read updates on recoveries on the platform in the usual way.
Will I be able to sell my investments on the secondary market?
No. The secondary market will not be available during wind-down and we will not be accepting any new investments.
Will my lender account be closed?
We will close each lender account at the point where it has no investments and no uninvested funds.
If you want to request to close your account, please follow the procedure as set out in our T&C’s. You cannot close your account until your live investments have reached a conclusion and you no longer have any balance in your account.
Any dormant accounts where there are no live investments, but some uninvested funds will be closed by us and uninvested funds returned.
Once your account has been closed you will not be able to access the platform.
I have an IFISA with MoneyThing, how will this be affected?
We will not be accepting any new transfers in of ISA money.
As we are managing our own wind-down, we still have the same regulatory permissions and we are still an ISA Manager. As such there are no changes to the management of your existing IFISA. You may have the option to transfer out your IFISA investments from MoneyThing to another provider and you should refer to the IFIFA rules that apply to you and take advice if appropriate.
As your IFISA loans are illiquid, it may not be possible to do this immediately and you may need to wait until your loans have repaid. If you have a current year subscription, it may not be possible to transfer out only part of your subscription.
If you have any specific IFISA questions, please email [email protected].
Does MoneyThing have a living will in place?
Yes, it is part of the FCA rules to have a ‘living will’ or wind-down policy in place and we are putting this into effect now. There are a number of options available to firms to carry out an orderly wind-down. We elected to manage our own wind down from the proceeds of our residual loan book. We informed lenders of this in the Lender Terms and Conditions.
We decided to manage our own wind-down because we believe we are best placed to manage the remaining loans. Appointing another agent to run the loan book is likely to add a layer of additional cost and reduce returns to lenders. We have always taken recoveries very seriously and we want to be in control of making the best decisions for our lenders.
Has MoneyThing appointed an administrator over the company?
No. We are continuing to operate using our residual income from the existing loan book. We are reducing our operational expenses so that we can continue to operate an orderly wind-down.
There are new regulations for P2P platforms coming into effect on the 9th December. Will MoneyThing comply with them?
Yes, we will continue to comply with all regulatory requirements that apply to us, although some will not be relevant to us in wind-down. The focus of the new regulation can be summarised under the following headings:
- - Risk management framework
- - Governance
- - Wind down and resolution manual
- - Disclosure requirements
- - Marketing restrictions
As members of TISA and the UKCFA we have been party to the industry discussions around the new regulations. We have spent considerable time, together with our compliance advisory firm, ensuring that we are well prepared. We already had a risk framework, governance process and wind down plan in place, however these have all been reviewed and updated over the past few months.
However, the changes applicable to accepting new investments are not relevant to us. We will not be accepting any new investments and so the appropriateness testing and customer classification will not be applicable to us. We will also no longer carry out any financial promotion activity.
Will I still be able to contact MoneyThing?
Yes. Lender support will continue as before, although we will be operating with a reduced team. Our main form of contact remains email at [email protected]. If you can’t get through to us on the phone immediately, please leave a message and we will call you back.
What will happen to TheThings?
We will be operating with a reduced team during wind down and we sadly have to say goodbye to our great team from the end of January. All our people have been exceptional, hard-working and dedicated people. We wish them the very best of luck in their future careers.
During wind-down Ed Pearce will be responsible for day to day operations and we will continue to have technical support from Sean Gao. Oli Pearce will continue as finance manager on a part-time basis and Sophie Pearce will continue as MD with overall responsibility. David Monro will continue as Director and Compliance Officer.
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I have been a bit relaxed and not followed whats happening. Going back 3-4 years ago I had 30k in Lendy (saving stream) Got that out just in time. Just requested withdrawal of 5k split from Zopa and Ratesetter.
And still have £300 in money thing default loan been dragging on for 12 months.
Associate
- Joined
- 15 Jun 2009
- Posts
- 2,494
I've had a few problems.with ratesetter over the last few months combined with the new rates and rules I'm going to be slowly withdrawing mine.
Luckily most of my contracts are due to be paid off in a month or two and since it auto reinvests I think I'll.just put the rate up stupidly high so they don't get accepted then take.the money out. Unless anyone knows of an easier way which avoids fees?
Luckily most of my contracts are due to be paid off in a month or two and since it auto reinvests I think I'll.just put the rate up stupidly high so they don't get accepted then take.the money out. Unless anyone knows of an easier way which avoids fees?
Associate
- Joined
- 19 Dec 2016
- Posts
- 244
is there anyway you can know before hand if a lender is about to go bust? i have a rather large sum invested on lending works as it was giving me next to nothing interest in a normal bank..
Don
Aye the arse has fallen out of Funding Circle as well, recession incoming!