23-05-2019, 09:17 AM
All loans now appear to be suspended!!!
Lendy Ltd - In Administration
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23-05-2019, 09:17 AM
All loans now appear to be suspended!!!
23-05-2019, 09:25 AM
FCA restriction on new client money?
23-05-2019, 10:54 AM
I have no idea of what is happening at Lendy, but find extremly surprising that the FCA is not acting in force with disaster companies like this.
If you look at other regulated financial markets, like banks, the BCE is having a strict control over the banks, their capital ratios, their NPL and imposing stress tests and also asking banks to improve ratios when they are not anymore within reasonable windows. For example NPL should be below 10% and improving over time (with strict deadlines and imposed sales, even at distresed levels). Lendy and some other P2P companies have continued accumulating NPL out of any control (50, 60, 70% of their portfolios!!!!!)and should have been stopped from trading much much earlier.
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23-05-2019, 11:11 AM
(23-05-2019, 10:54 AM)thegrumbler Wrote: I have no idea of what is happening at Lendy, but find extremly surprising that the FCA is not acting in force with disaster companies like this. Fundamental difference between a bank and a P2P company is principal and agent. The bank's themseves are liable for the bad debts, in theory at least, the loss in P2P is attributable to lenders and has again in theory no affect on the platform. Another minor difference is that banks are regulated by Prudential Regulation Authority.
The opinions and observations that I display on this forum are personal and do not necessarily concur with the proprietors of the forum. I represent no platform or other organisation in my postings and my remarks should not be taken as advice. I accept no responsibility or liability for the accuracy, content, completeness, legality, reliability of the information contained in my posts. Or for people acting or refraining to act upon them.
23-05-2019, 11:48 AM
There is a (reportedly) long and complex process for P2P companies to get FCA authorisation to provide lending services.
Lendy and other companies passed this process and got the FCA authorisation, which is shown on their web pages and communication. Well, I think that the FCA role is not only to give a stamp on procedures and think this stamp valid forever, but also to monitor and enforce rules, with a constant action which should be in the interest of lenders/consumers. I presume FCA also has the power to suspend the license or intervene asking corrective actions to companies which go over any reasonable limit (like Lendy has been doing for months and months). So, my take is that there should be a much stricter and more timely control of adherence to rules by the FCA.
23-05-2019, 05:54 PM
(23-05-2019, 11:48 AM)thegrumbler Wrote: There is a (reportedly) long and complex process for P2P companies to get FCA authorisation to provide lending services. Yes there is a long process to gain FCA approval and it took longer for Lendy to obtain it than most. In fact I believe at the time they were granted a large proportion of their loan book was already non performing, certainly more than the 10% figure you quote that the PRA require banks to be below. But what exactly does FCA authorisation actually mean? Under the "light touch regime" of P2P. I would suggest virtually noting unless you don't have it, as in Collateral's case. It does mean You keep client's money separate from your own There are at least two responsible persons, within the meaning of the FCA handbook You have a place of business within the United Kingdom At least one of the responsible people is in the jurisdiction You comply with the administrative requirements of the Companies Acts (something that Lendy group companies have failed to do at least a dozen times) and the Financial Services and Markets Acts. In terms of investor protection apart from the first one they amount to a little more than a hill of beans, to use a literary alliteration. What it does not mean The persons in charge of the platform have adequate knowledge and experience to operate a lending business. The platform must operate adequate systems of lending assessment, including, but not limited to, whether the borrower represents an adequate credit risk for the amount of loan and its term, whether the security for the loan is adequate, or even exists. (most platforms specifically exclude these potential defects in their terms and conditions) That the company or its directors do not have a conflict of interest, either direct or indirect, with the lenders on the platform. That the platform operates any meaningful debt recovery processes. That the platforms warrants any or all of the information given to lenders, both potential and actual. Whatever you believe, i.e. "I think that the FCA role is not only to give a stamp on procedures and think this stamp valid forever, but also to monitor and enforce rules, with a constant action which should be in the interest of lenders/consumers." it is not. Anyone who believes, and continues to believe, FCA regulation gives investor protection is deluding themself. Especially when most of the P2P platrforms were tiny capitalised companies operated by opportunists who encouraged people to call them by their first name.
The opinions and observations that I display on this forum are personal and do not necessarily concur with the proprietors of the forum. I represent no platform or other organisation in my postings and my remarks should not be taken as advice. I accept no responsibility or liability for the accuracy, content, completeness, legality, reliability of the information contained in my posts. Or for people acting or refraining to act upon them.
23-05-2019, 08:15 PM
(23-05-2019, 09:25 AM)Monetus Wrote: FCA restriction on new client money? After the deposit I made on the 15th was credited almost immediately, another test one I made at 9:30am today still isn't showing on my account, so summats afoot. (Don't think they can blame Barclays this time!) (The withdrawal mentioned in that post eventually arrived on the 21st, but another test one today - again early doors - hasn't arrived in my account, although I did get the confirmation email straight away.) pfka new2p2p
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24-05-2019, 09:42 AM
(23-05-2019, 05:54 PM)dualinvestor Wrote: Whatever you believe, i.e. "I think that the FCA role is not only to give a stamp on procedures and think this stamp valid forever, but also to monitor and enforce rules, with a constant action which should be in the interest of lenders/consumers." it is not. The Financial Conduct Authority (FCA) oversaw the operations of 56,000 financial firms and markets in 2016. Independent of Government, it has three operational objectives, which include:
Some P2P companies (like Lendy) have show very littlecare of consumers (e.g. arbitrarilly changing the lenders's lending terms to Lendy own exclusive advantage as in DFL001), very little care of financial rules and laws (e.g. not ensuring that secured creditors are fully satisfied before releasing a penny to unsecured ones, as happened in DFL005 and DFL012). In such cases I see the FCA intervention not only necessary but due to their own goals and to protect consumers which are effectively defrauded of their rights and their money by companes regulated by the FCA itself!
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24-05-2019, 10:06 AM
(24-05-2019, 09:42 AM)thegrumbler Wrote:Whatever you believe is your prerogative I merely point out the facts of what "light touch regulation" means, for what it's worth I agree with your sentiments it's just they don't have legal foundation.(23-05-2019, 05:54 PM)dualinvestor Wrote: Whatever you believe, i.e. "I think that the FCA role is not only to give a stamp on procedures and think this stamp valid forever, but also to monitor and enforce rules, with a constant action which should be in the interest of lenders/consumers." it is not.
The opinions and observations that I display on this forum are personal and do not necessarily concur with the proprietors of the forum. I represent no platform or other organisation in my postings and my remarks should not be taken as advice. I accept no responsibility or liability for the accuracy, content, completeness, legality, reliability of the information contained in my posts. Or for people acting or refraining to act upon them.
24-05-2019, 12:24 PM
The FCA does seem to have some power. AIUI they put Lendy under some sort of special measures and have to approve all payments over £5k. Could they lay down transparency stats that platforms have to provide about aggregate NPLs?
All my posts are my personal opinion and are not advice. History suggests that, if anything, it would be more profitable to do the opposite of whatever I do, but whatever you do will not be any responsibility of mine.
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24-05-2019, 12:50 PM
(24-05-2019, 12:24 PM)Littleoldlady Wrote: The FCA does seem to have some power. AIUI they put Lendy under some sort of special measures and have to approve all payments over £5k. Could they lay down transparency stats that platforms have to provide about aggregate NPLs? Yes they do have some powers but not in the way most people seem to think they have. Supervision of actions in the way it has recently been applied to Lendy is a most serious matter and it would be a coincidence beyond the bounds of reality to think that yesterdays suspension was unconnected. I am surprised a great deal more of it has not been made on the forums. They can also revoke authorisation, take away "responsible person" designation, petition for the winding up of a company undertaking a regulated activity and a lot of other things, but mostly they are precipitate leading to the cessation of trade of that company. They have very wide ranging powers under the Financial Services and Markets Acts and its associated regulations but have been shown to be reactive rather than proactive in using them. Higher tiers of regulated businesses, i.e. hose covered by the Financial Services Compensation Scheme, are subject to much tighter regulation, firms in the "light touch" regime seem to have hardly any at all, apart from quarterly returns of client money they don't even have to publish their full accounts or get them audited. There's nothing in the rules about laying down regulations for transparency statistics, that's not to say they couldn't alter the rules, but I would question the efficacy of the measure, if the platforms are not subject to constant monitoring and strict rules of compilation not applied they would be pretty meaningless.
The opinions and observations that I display on this forum are personal and do not necessarily concur with the proprietors of the forum. I represent no platform or other organisation in my postings and my remarks should not be taken as advice. I accept no responsibility or liability for the accuracy, content, completeness, legality, reliability of the information contained in my posts. Or for people acting or refraining to act upon them.
24-05-2019, 04:49 PM
(23-05-2019, 08:15 PM)zappa Wrote:(23-05-2019, 09:25 AM)Monetus Wrote: FCA restriction on new client money? That test deposit from y'day just popped into my account. Will need to check later to see if a withdrawal has been processed. pfka new2p2p
24-05-2019, 05:16 PM
Interesting. So fresh money arrived after all?
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24-05-2019, 06:09 PM
Properly Suspended!
Quote:On 24 May 2019, following action taken by the FCA, Lendy Ltd, a regulated Peer-to Peer (P2P) firm, appointed Damian Webb, Phillip Rodney Sykes and Mark John Wilson of RSM Restructuring Advisory LLP as administrators. The same administrators have been appointed for two further related, but unregulated, firms: Lendy Provision Reserve Ltd; and Saving Stream Security Holding Limited. These appointments have been made by the firms, in respect of Lendy Ltd, with the consent of the FCA.
24-05-2019, 06:15 PM
No way! Well, that's a shock!
I'm an engineer by trade, so don't normally have money. If you lose any money because you listened to something I have said, more fool you!!
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24-05-2019, 06:17 PM
However, this may ensure more of the funds from DFL012 are returned to investors rather than skimmed off by LB and Co.
I'm an engineer by trade, so don't normally have money. If you lose any money because you listened to something I have said, more fool you!!
24-05-2019, 06:20 PM
At least the website is still up and I was able to get an accounts history dump, so from that perspective, this is no 'Col v2'.
Any volunteers for the Creditors Committee??? (Don't think there'll be any benefit to be had, TBH, just more time and costs) pfka new2p2p
24-05-2019, 06:21 PM
In a strange way I am relieved. I had already removed all the funds in Lendy from my spreadsheet and had them as losses.
At least now I know that there is a chance of getting some of it recovered. And if it can't be recovered, I will find out in the next 12 months or so. Happy days. I feel sorry for @zappa though! How is he going to get his £1 back out now??
I'm an engineer by trade, so don't normally have money. If you lose any money because you listened to something I have said, more fool you!!
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24-05-2019, 06:38 PM
(24-05-2019, 06:21 PM)Skint4achange Wrote: I feel sorry for @zappa though! How is he going to get his £1 back out now?? Client account. @dualinvestor please correct me, but I'm assuming that has to repaid 100% under law? (I've actually just put a withdrawal request in for it. Still not sure whether Wednesdays has hit my account or not as presently unable to check my bank accounts. Nothing to do with the FCA I hasten to add! ;0 ) Tend to agree with you, though. There are pro's and cons to this turn of events, but hopefully the P2P industry and 'punter' investors (and the FCA to some extent) will wake up and start evaluating just how risky P2P is. At least there will be more transparency over the recoveries than might otherwise be the case and there'll be no can-kicking. Also feel a little bit sorry for Liam and Co. Maybe I shouldn't, but I do. pfka new2p2p
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24-05-2019, 06:43 PM
(24-05-2019, 06:38 PM)zappa Wrote:(24-05-2019, 06:21 PM)Skint4achange Wrote: I feel sorry for @zappa though! How is he going to get his £1 back out now?? It's back to the issue of "trust money." If it is in the client account and everything that should be in the client account is then it is your money. If not it gets rather more complicated.
The opinions and observations that I display on this forum are personal and do not necessarily concur with the proprietors of the forum. I represent no platform or other organisation in my postings and my remarks should not be taken as advice. I accept no responsibility or liability for the accuracy, content, completeness, legality, reliability of the information contained in my posts. Or for people acting or refraining to act upon them.
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24-05-2019, 06:48 PM
My only confusion is why the administrators have stated that Lendy, Savings stream and the provisional fund have all been put into administration.
I know some of the assets were held by savings stream, but also the property in Southsea was owned by SS. Will this form part of the recoveries for the investors or is this handled in another way as it is a company asset?
I'm an engineer by trade, so don't normally have money. If you lose any money because you listened to something I have said, more fool you!!
24-05-2019, 06:59 PM
From the FT: here
British property finance company Lendy collapses Nicholas Megaw in London 24/5/2019 British property finance company Lendy has collapsed in the largest failure to date in Europe’s nascent peer-to-peer lending sector, prompting an investigation by financial regulators. Administrators at RSM were appointed by court order on Friday afternoon. The Financial Conduct Authority said the appointment was made “following action taken by the FCA”, and said “there is an ongoing investigation into the circumstances that have led to this action”. The Financial Times first reported concerns about rising default levels at the company — which allowed retail investors to lend to property developers — last autumn, and it was placed on an FCA watchlist at the start of this year, less than 12 months after it received an FCA licence. The regulator had raised questions about its ability to meet the minimum standards required of regulated firms, but tried to work with the company and its creditors to avoid a collapse. Their failure raises the prospect of tens of millions of pounds of losses for retail investors. Lendy has more than £160m in outstanding loans, of which more than £90m is in default. Several million pounds of loans more are behind on repayments, but not yet classed as non-performing In an update posted on Lendy’s website, the company said it had “limited” information for creditors, and asked them to await further updates. RSM said it was “working closely with the FCA”, and would outline its proposals to investors and creditors “in due course”. The collapse and investigation comes as the peer-to-peer sector awaits an expected crackdown on marketing rules, after the regulator warned that many customers were being lured into high-risk products without fully understanding them. The sector has experienced several high-profile scandals and collapses in the US and Asia, but only a handful of small companies such as Collateral, TrustBuddy and Be The Lender have encountered significant problems in Europe. Peer to peer lending was encouraged in the wake of the financial crisis as a way to fill the gaps left by banks that cut lending to certain sectors, while providing an alternative source of income for savers hit by low interest rates. However, many early pioneers such as Zopa and Finding Circle have since attempted to move towards more traditional ways of funding their loans.
24-05-2019, 07:01 PM
(24-05-2019, 06:48 PM)Skint4achange Wrote: My only confusion is why the administrators have stated that Lendy, Savings stream and the provisional fund have all been put into administration. Lendy is a Group - Part of that group that hasn't entered admin owns the offices they operate out of, which wasn't cheap I'm also pretty sure there are further properties under Lendy Property Holding Limited > https://beta.companieshouse.gov.uk/compa...76/charges So... money in the group, that's for sure - but can the Admin get to it (@dualinvestor ?) Let's not forget that secured creditor The Metro - so much for the PF
PLEASE NOTE : The opinions and observations that I display on this forum are of a personal nature. I am not a professional within the financial sector, I represent no platform and my remarks should not be taken as advice. I accept no responsibility or liability for the accuracy, content, completeness, legality, or reliability of the information contained in my posts.
24-05-2019, 07:13 PM
Thinking about DFL012, it is a bit strange that Lendy just received £XM for that development, which most of us assume was at a bargain price.
Those funds had probably made it into the Lendy account and the fees were removed. Leaving whatever for the investors. I sense that the quick sale at a discount would also benefit the owner of the freehold to the DFL..............................Whoever that is!
I'm an engineer by trade, so don't normally have money. If you lose any money because you listened to something I have said, more fool you!!
24-05-2019, 07:28 PM
(24-05-2019, 07:13 PM)Skint4achange Wrote: Thinking about DFL012, it is a bit strange that Lendy just received £XM for that development, which most of us assume was at a bargain price. The administrators have the power to check any wrongdoing in the company affairs and I am sure they will scrutinise any 'strange' action in DFL012 and also in DFL005.
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24-05-2019, 07:30 PM
Just a quick note, an important one I think as some will be browsing forums and wonder what happens next
LY appointed Baker Tilly Creditor Services LLP as their Back-up Servicer some time back; this firm was taken over by RSM, so no coincidence it is RSM managing Admin LY is fully FCA approved, so no COL rubbish here; segregated accounts, back-up data and an actual plan, backed by the FCA (and likely with their input since they have been lingering and this has been initiated by their own action). This should be orderly, and whilst individual loan recovery is subject to either the borrower repaying or recovery by other means, this is a far cry from COL In fact, it's safe to say, that not much has changed for LY investors; it might even be said that LY may be in better hands today than yesterday
PLEASE NOTE : The opinions and observations that I display on this forum are of a personal nature. I am not a professional within the financial sector, I represent no platform and my remarks should not be taken as advice. I accept no responsibility or liability for the accuracy, content, completeness, legality, or reliability of the information contained in my posts.
24-05-2019, 07:34 PM
Totally agree CD.
My only concern is that where further recoveries are concerned (DFL012 and the Scottish estate etc.) the administrators will not look to progress any further action in regard to these. The borrowers will get off without being chased AIUI
I'm an engineer by trade, so don't normally have money. If you lose any money because you listened to something I have said, more fool you!!
24-05-2019, 07:45 PM
(24-05-2019, 07:01 PM)CoolingDude Wrote: Let's not forget that secured creditor The Metro - so much for the PF From Liam's email a couple of months back: Quote:We are in the process of restructuring the banking facilities and the debenture over the Provision Fund is scheduled to be removed over the next four to eight weeks. Moving forwards, we can confirm that the Provision Fund will be further ring fenced and will not be subject to any charge or encumbrance. Administrators report is going to be soooooo interesting ... pfka new2p2p
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