The essentials are here and will be regularly updated. If you want to be well-informed about the investment crowdfunding scene, and you're short of time, this is the place to visit.
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1. UK – P2P
“Peer-to-peer business lender Assetz Capital has added to its senior team with the appointment of Chris Macklin as chief risk officer.
Macklin has over 35 years of experience at RBS/NatWest, including four years as head of complex customer management and strategic relationship management.
His focus as chief risk officer will be to head up all of the platform's risk management operations as well as building framework already in place across the business, the firm said in a statement.”
2. UK – P2P
And P2PFN reports another hire:
“INVESTLY has hired a new chief executive to lead the business as it looks to scale up by providing a white label offering to larger partners.
Wayne Hughes has over 35 years of experience working in senior roles with well-known financial services brands such as Demica and Bibby Financial Services. He takes over from founder Siim Mavel, who now holds the role of chief data officer.
Last month, the peer-to-peer invoice finance provider launched a white label technology platform, so that large origination partners can offer invoice discounting to their customers without having to develop the technology in-house.”
3. UK – FinTech
‘The number of crowdfunded loans originating from online platforms has grown at an exponential rate in recent years. This increasingly emerging and important financial sector has been subject to a FCA Consultation Paper issued earlier this week. Does the Paper endorse those eye-catching comments made by Lord Adair a couple of years ago?
Predictably, it does not. Nor does the Paper, which appears to commend the 'innovation' associated with the sector, draw such a conclusion. The FCA do, however, identify areas of concern. They recommend a series of changes which will bring loan-based crowdfunding platforms increasingly under their microscope.
The Paper and its conclusions are unlikely to come as a surprise to those operating in the sector. Since the publication of its Policy Statement of March 2014 the FCA have been keen not to be perceived as stifling this technology-led sector but to, instead, flag it as a developing area under review. That approach was formalised by the commissioning of a 2016 post implementation review. This flagged the FCA's concerns of potential investor detriment and its aim to propose new rules. From these beginnings the recent consultation paper was born.
The Paper concentrates on two forms of internet based crowdfunding. Internet platforms which facilitate investors investing directly in businesses are not considered to be in need of any significant regulatory change. The Paper asserts that the FCA are "largely content" that the regulatory framework for these is "adequate". In contrast, the FCA recommends that more rigorous regulation should be introduced and apply to those platforms that act to facilitate loans between lenders and borrowers.
The FCA recognises that some P2P platforms already have robust systems and controls in place and says that these platforms will have the easier task of complying with any recommendations that are implemented. However, the backdrop is of an industry where it has identified cases of "actual or potential harm to investors" which it says should be addressed by tighter regulation applicable to all.”
4. UK – FinTech
“Yielders, a property investment platform based in the UK that is also the first FCA regulated Islamic Fintech, has closed on a pre-series A funding round. Exact terms of the deal were not revealed.
The capital infusion comes at the same time that Yielders is announcing the completion of regulator authorisation in the Netherlands, Norway and Luxembourg. Yielders seeks to expand its offerings beyond the boundaries of the UK which is in the midst of a extended Brexit process.”
5. US – FinTech
More from the US as the drive to round up the obvious bandits continues.
“The CEO and founder of Springleap, Inc. and an ICO project called Shopin, which raised $46 million in an ICO (initial coin offering) sale this year, has been indicted on multiple counts of grand larceny and fraud for conduct related to the sale of “convertible notes” for Springleap, reports Crowdfundinsider.
A release from the New York offices of Attorney General Barbara Underwood yesterday announced multiple charges of grand larceny, unlawful duplication of and criminal possession of computer-related material, scheme to defraud and securities fraud against Eran Eyal, 43, of Brooklyn.
“As we allege, this massive securities fraud scheme bilked investors out of hundreds of thousands of dollars,” Attorney General Underwood said.”