RateSetter publishes living will terms
RATESETTER has unveiled changes to its investor terms that allow it to suspend access to funds to manage liquidity and to charge a wind-down fee in the event of closure of the business.
The changes come in the wake of the new Financial Conduct Authority regulations.
The peer-to-peer lender said the ability to release an investment has always been subject to there being sufficient funds on the market, but now it will be able to temporarily suspend this function if it needs to manage supply and demand on the platform.
It can now also indefinitely suspend the ‘release investment’ function in the event of a wind-down.
The platform has also revealed that lenders may be charged a wind-down fee if the business closes.
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It will help cover the costs of a wind-down and will be capped at two per cent of the outstanding capital balance of a loan and calculated and taken on a monthly basis throughout the duration of the wind-down.
Under the FCA rules, platforms must disclose how they would manage a wind-down.
Some will do this themselves and would need to fund it either through loan income or extra fees, while others may choose to pay a third party to manage it.
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