News Briefing - Crowdfunding, SME And Alternative Finance

crowd walking

1.UK – P2P

P2P Finance News on a new guide to P2P investment from TISA.

 

“INVESTMENT and savings trade body Tisa has published a guide to appropriateness tests for peer-to-peer lending platforms to help them comply with new investor marketing rules.

The guide advises P2P firms on how to identify appropriate investors and how to warn clients if a product may be inappropriate for them. It was created in response to the Financial Conduct Authority’s (FCA) updated regulations for the sector, which come into effect on 9 December.

Under the City watchdog’s new rules, P2P platforms will need to carry out an appropriateness assessment that considers a client’s knowledge and experience of the P2P investment before the platform can accept a subsequent instruction to invest. This is already a requirement for crowd bond providers and equity crowdfunding platforms.

Tisa’s guide advises platforms on when to issue the assessment test to new investors, how to define “complex” and “non-complex” investments, and what the appropriateness test should cover.”

Tisa creates guide to appropriateness tests for P2P platforms | Peer2Peer Finance News

2. UK – P2P

AltFi News reports:

“P2P lending platform CODE Investing has launched an SME debt finance platform for commercial finance brokers and intermediaries seeking finance for their clients of up to £5m.

The portal provides a single point of contact for brokers looking to secure loans from a range of lenders. Intermediaries simply input some basic information, such as company number or name, the amount they are looking to borrow, the purpose of the loan and suggested term. Key financials are then filled in using Creditsafe and other third-party data providers via secure APIs and scans its panel of lenders to provide an instant decision. Following a positive decision brokers and Code begin the due diligence process.”

P2P lending platform sets up broker portal - AltFi News

3. UK – AltFi

FT Adviser on compensation issues raised by the LCF affair.

Key Points

  • The LCF collapse poses questions of who should pick up the tab
  • The FSCS is not making it easy to make a claim
  • Investors could claim if they went through an unregulated introducer

4. UK – Equity

 

CityA.M. reports:

 

“2018 saw Seedrs’ net operating losses climb to £4.33m, a 12 per cent increase on the previous year. This marks a return to increasing losses after the platform decreased operating losses by 7 per cent between 2016 and 2017. 

Revenues rose substantially, however, with the investment platform bringing in £4.8m – 56 per cent up on 2018.”

5. US – FinTech

Crowdfundinsder reports on a platform that has facilitated more than $300 million equivalent in cryptocurrency loans.

  • Celsius has completed over 160,000 coin loan trades
  • Celsius serves 40,000 members from over 150 countries
  • Celsius has distributed over $3 million in interest payments
  • Celsius paid depositors the industry’s best rates over the past year with no minimums or caps and no fees or penalties
  • Celsius paid more in earned BTC and ETH than anyone returning up to 80% of its revenue to depositors, compared with Binance BNB returning 20% of profit as buyback and Nexo distributing 30% as a dividend
  • Celsius is still the only fully transparent organization with data about membership, deposits and loans available in real-time in the app to all users to the health of the Celsius community