Peer2Peer Finance News
The UK's first peer-to-peer finance magazine for investors and the industry
  • Home
  • News
    • Personal Finance News
    • Industry News
    • SME News
    • Global News
  • Property
  • IFISA
    • IFISA Guide
  • Video
  • Open Banking
  • Cryptocurrency
  • Features
    • Joint Ventures and Promoted Content
  • Comment & Analysis
  • What is P2P?
  • Partners
  • Events
    • Past Events
  • P2P Power 50
    • Power 50 2020
    • Power 50 2019
    • Power 50 2018
    • Power 50 2017
  • Sign up to our e-newsletters
  • Magazine
  • Directory
  • Jobs
  • My Account
    • Manage Account
    • Change Password
    • Log In
    • Log Out
Clock money
January 9 2020

Proplend replaces back-up service provider

Marc Shoffman Industry News, News, Top 3 FCA, Funding Circle, Proplend, Ratesetter, Resolution Compliance, Target, wind-down plans, Zopa

PROPLEND has changed its back-up service provider in the event of a wind-down of the platform.

The commercial property peer-to-peer lender has appointed Resolution Compliance to manage its loans should it ever become insolvent, replacing Target which has been in the role since 2016.

All platforms must detail their wind-down plans and who any back-up service provider would be as part of the new Financial Conduct Authority (FCA) regulations introduced in December 2019.

“In the event of Proplend ceasing to trade, our back-up service provider would take on operationally managing and administering existing loan contracts between lenders and borrowers,” Proplend said in an update to investors.

The platform said the ongoing 10 per cent fee charged on the interest that is payable to Proplend by lenders should be sufficient to provide an ongoing revenue stream through the life of the funded loans to cover the servicing cost for the back-up provider.

Read more: LandlordInvest updates wind-down plans ahead of new regulations

P2P lenders have adopted different approaches to their wind-down plans.

Funding Circle, Zopa and Lending Works all say they would transfer operation of the platform and loans to a third party – Target Servicing – in the event of a wind-down, which could charge an additional fee to cover its costs.

Assetz Capital said it has a standby plan to repay lenders and close the platform, which would be managed by RSM Restructuring Advisory in the event of a wind-down. It said the income it receives under the loan agreements is “more than sufficient to cover the expected costs of winding down the loanbook”.

Meanwhile, RateSetter has said it will manage a wind-down itself but investors may have to pay a fee to fund the costs of closing the business.

Read more: Many P2P platforms unprepared for new standby and wind-down rules

 

ThinCats appoints associate director for London and the south east P2P investment aggregator InvestUp plans relaunch

Related Posts

Chirag-Shah-Nucleus-new-700x325

Industry News, News, Top 3

Nucleus updates business growth loans

Bank of England

Industry News, News, Top 3

Bank of England supports fintechs to scale-up

Woman has video conference with her remote team using laptop and camera

Industry News, News, Top 3

Remote working set to continue for finance and tech workers

Popular posts:

  • Business Loan Network appoints administrators
  • Starling Bank ready to acquire a lending business
  • Funding Circle chief turns down £190,000 pay rise
  • LCF law firm responds to Treasury compensation scheme
  • Chancellor unveils raft of measures for fintech sector
  • New BBB boss was warned about “glass cliff”
Back To Top
  • Home
  • Contact
  • About
  • Team
  • Advertising
  • Subscribe
  • Privacy
  • T&Cs
  • Disclaimer

Follow Us on Social Media

© Peer2Peer Finance News 2020
• Additional design by