1.UK – AltFi
Money Marketing on the FCA’s further concerns over London Capital & Finance
“The FCA has clarified a host of concerns it has over collapsed mini-bond provider London Capital & Finance, and has launched an independent investigation into its failure.
The firm first hit the headlines after being told to cease marketing activity by the FCA in December amid claims it was misleading, with the mini-bonds on offer being marketed as Isa eligible when they were not
In another warning to the firm, the FCA said LC&F gave “undue prominence” to the fact that it was regulated by the watchdog. The firm as a whole was indeed regulated, but promoting mini-bonds is not a regulated activity.
In its annual report today, the FCA details a number of concerns that led it to take action against the business, confirming that it has started an enforcement investigation using both its criminal and civil powers.
The FCA writes: “Our concerns are mainly about the unsustainability of its business model, as it appeared that coupon (interest) payments to existing investors were being funded by new bond issuances. Also, we considered that not all the corporate borrowers to which LCF made loans were unlikely to be able to support the rates of return that LCF advertised.”
2. UK – P2P
Peer2Peer Finance News on offers to buy the collapsed lender, Lendy:
“LENDY’S administrator has received offers to buy the collapsed peer-to-peer lender, but has not yet decided on the best course of action.
Peer2Peer Finance News understands there has been at least one formal offer to acquire the platform’s investors and loans, subject to due diligence. However, little progress has been made as the administrator, RSM, has allegedly been reluctant to engage in talks.
A well-placed source has suggested that a lack of communication from the administrator is making it harder for potential buyers to assess the platform and make an offer.
RSM confirmed to Peer2Peer Finance News that third parties have expressed their interest in the platform.
“There has been significant interest in the Lendy portfolio but at this point in time the strategy for unwinding the loanbook has not been formalised,” RSM said in an emailed statement.”
3. International – FinTech
Cryptocurrency Guide offers a Libra infographic.
4. International – FinTech
More SEC attention is being directed to cryptocurrencies, according to Pension and Investment.
5. International – AltFi
“A new trading platform for security tokens has launched with backing from Singapore Exchange (SGX), the country’s public stock market, and technical support from ethereum startup ConsenSys.
The 1X platform has gone live Wednesday with its first listing of an ethereum token, purchasable with Singapore dollars. The token represents about 7 percent of the shares of a Singapore fund manager called Aggregate Asset Management (AAM).
AAM raised about $4 million in fiat currency in the six weeks since May 4, 2019. Investors in the round received the corresponding ethereum tokens to account for their ownership, which is now tradable on 1X.”