News Briefing - Crowdfunding, SME And Alternative Finance

three women and a man discuss reports

1.UK – AltFi

AltFi News  reports on events at Hadrian’s Wall.

“The £141m  Hadrian's Wall Secured Investment trust will likely raise new capital, according to a stock market update 

Launched in June 2016, the SME-focused direct lending portfolio aimed at mid-market loans, the investment trust initally raising £80m.

In the first quarter of 2019 the fund's investment manager said it had seen strong deployment in the quarter with £36m of new investments and that the fund has now fully drawn its £25m facility with Shawbrook Bank. Its average portfolio yield is now 9.3 per cent and the weighted average life is 2.9 years. It added that a new fundraise may be on the cards in an investor update.

Analysts at Liberum said it may look to raise further equity to manage liquidity requirements after  reporting a strong pipeline of lending opportunities.

“We calculate a 12-month NAV total return of 4.2 per cent. Assuming there are no loan performance issues, we would expect the run-rate on returns to be higher given the company is now fully deployed and the relatively high yield of 9.3 per cent on the portfolio.”


2. UK – AltFi

The Times reports.

“The chief executive of London Capital & Finance bought a luxury house only weeks before the financial watchdog froze the investment firm’s bank accounts and ordered it to withdraw “misleading” marketing.

Andy Thomson paid more than £2 million for the converted barn in East Sussex in October. It has a 52ft drawing room, six bedrooms, a heated swimming pool, seven acres of gardens and views of the South Downs.

Weeks later, the Financial Conduct Authority effectively shut down London Capital & Finance over concerns that it was offering unregulated “mini-bonds” promising savers returns of up to 8 per cent and had incorrectly marketed them as Isas, which are regulated.”



FT Adviser looks at minibond regulation.

 

“Law firm Shearman & Sterling today (May 7) sent a letter to the FSCS asking it to consider whether London Capital & Finance carried out activities in two regulated areas, namely "dealing in investments as principal" and "operating a collective investment scheme". 

The FSCS cannot currently accept claims for compensation from 14,000 bondholders who invested in London Capital & Finance, as the act of issuing mini-bonds in the UK is not a regulated activity. 

But the scheme has previously suggested bondholders could be entitled to compensation if they can prove they had been advised to buy the bonds, leading administrators for London Capital & Finance to comb through recordings of phone calls between the company's representatives and its customers to find out whether they were given advice.

An FSCS representative had clarified that because the firm was FCA-authorised, it would not matter if it lacked the appropriate regulatory permission and if a particular regulated activity, such as advising, was actually carried out in practice compensation could potentially be offered.”

And The Times has something to say on Blackmore and its marketing.

 

3. UK – P2P

P2P Finance News reports.

“ARCHOVER is targeting Hertfordshire businesses with the opening of its second regional office.

The peer-to-peer business lender has opened an office in Hatfield that will serve small- and medium-sized enterprises (SMEs) in Hertfordshire and Bedfordshire.

It joins Birmingham as the London-based platform’s second regional hub.

 

4. UK – P2P

 

Peer2Peer Finance News on one firm’s investment pattern analysis.

 

“PEER-TO-PEER investors on Robo.cash are boosting their contributions after just one month of lending, the European P2P lending platform has found.

Analysis by the Latvia-headquarter firm has found that the average investment increases by 30 per cent after the first month of investing and by another 10 per cent after the second month.”

 

5. International – FinTech

 

Pymnts.com reports.

“There is no shortage of bold claims on offer in payments and commerce. The last big news was that Facebook is building its own payments rails with Project Libra (a little bit of payments history repeating for longtime watchers). But apart from the underlined-in-bold events, innovation is rolling along: More IoT devices are getting online, and the general speed of every transaction is being pushed toward “instant.” And yet, for all the forward motion, it is notable that paper checks continue to hang around, as innovations big and small often take longer to take over than anyone estimates.”

6. International – FinTech

 

Crowdfundinisder on unreliable statistics in cryptoland.

“In March, Bitwise Asset Management pitched their case regarding the creation of a Bitcoin ETF to the Securities and Exchange Commission (SEC). While providing a compelling argument as to why the SEC should move forward with their ETF, the presentation also provided some interesting insight into the ongoing discussion regarding cryptocurrency exchanges and bogus trading volume.

It has long been accepted that many crypto exchanges inflate their trading volumes to burnish their relevance in the competitive world of digital asset trading. The Blockchain Transparency Institute has long published a highly regarded report that highlights real versus inflated trading volumes. Just recently, CoinMarketCap announced the Data Accountability and Transparency Alliance to provide accurate trading volume.

CoinMarketCap, along with real exchanges, realizes that fake trading venues are undermining the entire digital asset sector and something must be done about it.

Bitwise, in their presentation, provided not only names but some pretty pictures to go along with the expose.”

7. International – FinTech

Cryptocurrency Guide reports on a new crypto-linked card.

“The card offers users a cash back program, an Elite group membership and a loyalty rewards program with various benefits much like any other traditional card. For example, users who hold PYNs in their Paycent digital wallet get 1% of the total amount of PYNs price every month.

The card’s features and functionalities are clearly focused on convenience. Some highlights.

  • Send or Receive Digital Assetsfrom other Paycent users and external digital wallets anytime and anywhere.
  • Request Digital Assetsfrom other Paycent users wherever they may be.
  • Cash Into add credits to a user’s Paycent account through Visa, MasterCard, Alipay, UnionPay, and WeChatPay.
  • Cash OutPaycent credits anytime through Paycent Card.
  • Convertdigital assets to fiat and vice versa with low conversion rates.

 

Paycent has been active in the marketplace for over a year and boasts 50,000+ cards in the market globally and growing quickly. They have established a firm grasp on market share and investors are taking note.

Paycent opens up a robust cryptocurrency eco-system for individuals and businesses thanks to its diverse platform. The Paycent wallet holds Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH), DASH, Binance Coin (BNB) and Steem coins. The Paycent Card can be used to withdraw cash in local currency at ATMs and at offline merchants in over 200 countries at over 36 Million points.

The company behind Paycent Card, Texcent, a Singapore-based company with office in the Philippines and U.A.E, powers the Paycent Card financial platform. Texcent secured a remittance license from the Monetary Authority of Singapore (MAS). It is also a member of the Singapore Fintech Association (SFA).”