Platforms like ours are relatively new kids on the block in the world of high-yield products. It’s so new the terminology hasn’t settled down. It’s known as platform lending, marketplace lending or peer-to-peer (P2P) lending. The novelty is relative. Platform lending began in the US in the depths of the 2008 credit crunch. The banks […]
Question: When is advice not advice? Answer: When it comes from the Financial Conduct Authority (FCA). Let’s start with a little context. There’s been a greater focus on the peer-to-peer (P2P) sector from commentators and regulators, following the lamentable failure of the P2P platform, Lendy. Lendy’s collapse was linked – completely unfairly – with a […]
In part II of our blog on the P2P sector after the high-profile collapse of the Lendy platform, Nicola Horlick, Money&Co.’s CEO looks at how Money&Co.’s P2P loan book compares in terms of security and access as well as performance – with leading mainstream investments. Over the last 20 years, the FTSE 100 index has […]
In the high-profile wake of the failure of peer-to-peer (P2P) platform Lendy, there has been widespread caution about the P2P sector. However, it would be very wrong to generalise from the particular. As more has come out about the way that Lendy managed its business, it has become apparent that it took unacceptable levels of […]
The figures aren’t in yet, but it’s possible that the traditional end-of-season rush for investing in Individual Savings Accounts may be a thing of the past. Or at least less of a stampede than it used to be. Why’s that? Because the option of investing in a peer-to-peer (P2P) loan with higher risk and a […]
In many countries, financial products are sold through banks and there is a lack of independent advice. In the UK, clients rely on Independent Financial Advisers (IFAs) and the fact that they are independent should mean that they seek out the best products for their clients, leading to better returns. Many clients are financially unsophisticated […]
Hello. The new year is in, and we welcome 2019 with renewed emphasis on Money&Co.’s just-launched Portfolio Innovative Finance Individual Savings Account, which is managed by Bramdean Asset Management (an FCA-regulated fund management business). This service has already attracted significant volumes of business (in the final quarter of 2018) – and the prospects look excellent, […]
If the jury has decided to book itself onto a coach trip, is it still out? We recommended suspension of judgment on the pricing of Funding Circle’s shares before it hit the public markets a month ago. The shares are now trading around 370p, after a 440 float a month ago. Analysts certainly seemed to […]
Funding Circle is the oldest and biggest player in the peer-to-peer (P2P) market. It recently announced its intention to float on the UK stock market and raise £300 million by selling shares in the company. Funding Circle has facilitated loans of more than £5 billion to over 50,000 small businesses. The initial public offering (IPO) […]
The UK’s financial watchdog, the Financial Conduct Authority, has published a review of the crowdfunding industry and concluded that tighter regulation was needed for peer-to-peer (P2P) lending. Having read the latest materials, we heartily agree. The FCA states [it has] “observed the variety of loan-based crowdfunding business models, some of which have become increasingly complex. […]