News Briefing - Crowdfunding, SME And Alternative Finance

crowd concert

1.UK – P2P / IFISA

 

After all the hostility towards P2P IFISAs, this kicks the regulators…

ISAs paying now 10% a year – but you you can't open them unless you pass a quiz - mirror.co.uk

 

2. UK – P2P

Peer2Peer Finance News repots:

“THE UK’S peer-to-peer lending sector is set to experience “significant further growth”, according to Standard & Poor’s.

A report released by the ratings agency this week said that the growing involvement of institutional funds and increased securitisation issuance are set to boost the industry.

“Furthermore, there has also been involvement from certain government-supported entities such as the British Business Bank and European Investment Fund to support certain lenders, such as Funding Circle, with the aim of boosting access to finance for small- and medium-sized enterprises,” the report added.

Standard & Poor’s noted the five securitisations that have taken place in the UK P2P sector to date: three with Funding Circle loans and two with Zopa loans.

It said it expects to see more securitisations in the sector throughout Europe this year and beyond.

However, the report also suggested that peer-to-peer lenders have less ‘skin in the game’ than traditional lenders, as many platforms’ primary sources of revenue come from origination and servicing fees, rather than the interest and fees collected on loans.”

3. UK – AltFI

 

The Evening Standard has more on the LCF fallout.

“Administrators to the collapsed investment firm London Capital & Finance are investigating allegations that many of the biggest victims were misled into investing by the salesman tasked with handling the biggest investors.

LCF went bust leaving 11,700 investors — many of them elderly — fearing for their £237 million of savings. Its marketing agent, a company called Surge, hired John Russell-Murphy as a consultant to handle face-to-face sales to those considering investing the biggest sums. Many were pensioners who say he visited them at their homes.

The Evening Standard has spoken to 10 clients of LCF who invested between £100,000 and £580,000 and allege Russell-Murphy gave them financial advice that experts have suggested he was not allowed to give under Financial Conduct Authority rules because he is not a regulated adviser.”

4. UK – AltFi

Mortgage Introducer reports:

“The FCA has appointed Baroness Zahida Manzoor CBE as chair of the Financial Ombudsman Service, starting on 2 August, succeeding Sir Nicholas Montagu who is stepping down after more than seven years in post.

The appointment was made by the FCA Board with the approval of HM Treasury.

Baroness Manzoor was appointed to the House of Lords in 2013, where she served as House of Lords government whip and minister between March 2018 and May 2019. Before joining the Lords, Manzoor spent over 20 years at board level within large, complex organisations.”

 

5. International – FinTech

 

Yahoo Finance reports:

 

“A London-based fintech startup has raised $35m (£27.5m) in a funding round led by Chinese technology giant Tencent.

The startup, TrueLayer, has created an open banking platform that allows software developers to create tools for sharing and aggregating payment and banking information.

Temasek, an investment firm owned by the government of Singapore, also led the round. The funding round brings its total funding to date to $47m.

Previous investors Northzone and Anthemis also participated in the round.”

China's Tencent leads $35m investment in London fintech start-up 

6. International – P2P

 

Crowdfund Insider runs a positive opinion piece from a market player in Asia.