News Briefing - Crowdfunding, SME And Alternative Finance

many hands in a circle

1.UK – Equity

Crowdfund Insider reports:

 

Crowd2Fund, a UK based investment platform, is targeting the Global Financial Innovation Network (GFIN) markets for expansion.

In late 2018, the UK Financial Conduct Authority (FCA) ratcheted up their innovation focus by launching GFIN as it sought to target the larger challenges of cross border regulation. While financial services are regulated at the national or regional level, many financial services firms operate internationally. Dealing with compliance requirements in many different markets can add significant cost – this is a cost that is eventually past onto end users.

In the rapidly evolving digital technology world, Regtech can facilitate compliance but regulators and policymakers must be aligned. This is a significant barrier for Fintech companies seeking to expand.”

2. UK – P2P

 

P2P Financial News reports:

 

“MONEY&CO is helping to originate a loan for a borrower, which will be run in its own standalone Innovative Finance ISA (IFISA).

Grounds Investments, a UK subsidiary of German property developer The Grounds Real Estate Development AG, is looking to raise funds to back projects in Germany.

Investors are being offered a return of three per cent for two years or seven per cent for five.

The financing is being arranged by City superwoman Nicola Horlick’s (pictured) Money&Co brand, but Grounds Investments wanted to do its own, separate marketing.

Investors will be putting their money into an IFISA wrapper run by Horlick’s Bramdean Asset Management company.

“Grounds Investments is the borrower and we are originating the loan for them,” Horlick told Peer2Peer Finance News.

“It is exactly the same process for investors as usual, but Grounds Investments wanted to do its own marketing in conjunction with Money&Co.

“All promotions have to be approved by us.”

She said Money&Co has a debenture over Grounds Investments held on behalf of lenders.

In addition, there is a first charge on the underlying property held by a security trustee for the benefit of lenders.”

3. UK – P2P

 

The BBC reports on the LCF collapse.

 

“Thousands of people who invested in a high-risk bond scheme marketed as a "Fixed Rate ISA" fear they have lost everything after the company collapsed.

London Capital & Finance (LCF), now in administration, took £236m following a marketing campaign that is now under investigation for mis-selling.”

4. UK – P2P

INNOVATIVE Finance ISA (IFISA) provider EasyMoney has paid tribute to the power of the ISA savings wrapper, as the total amount of tax relief passed £3bn for the first time.

According to the most recent HMRC data, tax relief on ISAs was worth £3.15bn by 31 January 2019, a nine per cent increase on the £2.9bn that was accrued in the 2017/18 tax year.

 “These figures are yet another reminder about the huge tax savings available to investors by using an ISA,” said Andrew de Candole, chief executive of EasyMoney.

“Investors who can afford to, should be taking up their full allowance on an ISA or IFISA. Maximising returns is important given the current poor performance of cash ISAs.

“By using an IFISA and benefiting from these tax savings, investors can substantially increase the income and growth on their investments.”


5. International - FinTech

FinExtra reports:

“Australian fintech PayRight has raised over $30 million through a mix of debt and equity, with just over $26.5 million secured in the past 12 months led by corporate advisory firm Henslow in partnership with wealth manager Escala Partners.

Payright’s most recent debt and equity raise was oversubscribed and included a combination of existing shareholders along with a number of new professional and sophisticated investors. Following a period of substantial growth with a near-doubling of revenue quarter-on-quarter, PayRight is now in discussions to accelerate its growth profile, with plans to obtain further funding in Q4 FY19.”