RateSetter 2015 lender drinks
By Alexandra Dobson | Thu 10 Sep 15
By Alexandra Dobson | Thu 10 Sep 15
Our annual London investor drinks evening was hosted at Brand Exchange in the City of London near to the Bank of England. We were overwhelmed with the level of interest and a record number of you turned up to hear about the growth of RateSetter, ask questions to co-founders Rhydian Lewis and Pete Behrens and speak to RateSetter employees.
For those of you who were unable to attend the evening we’ve put together a video, including interviews with RateSetter investors.
The evening began with a presentation from Rhydian on the growth of RateSetter, with AltFi predicting that we will lend over £500 million during 2015. He explained that RateSetter has forged new partnerships including Commuter Club, giffgaff money and Creative Industry Finance – with more to come in the future. As we’ve grown strongly our team has expanded and RateSetter now employs more than 100 people – this will allow us to improve the level of service you receive.
In recognition of our efforts over the past year we have won a number of awards, including the Financial Times’ Best P2P lender, AltFi’s Alternative Platform of the Year and Moneywise’s Most trusted P2P lender for investors. A key milestone in March was the announcement that we’d raised funding from investors including Neil Woodford and Artemis – this will allow us to invest in technology and grow our marketplace to ensure that we are ready for the opportunities and challenges ahead.
We’d like to thank everyone who attended the event – we hope that you enjoyed the presentation and opportunity to meet other investors and RateSetter employees.
We’re organising another investor drinks event in Manchester on 1st October 2015 – places are limited, but if you’d like to attend, register online.
Questions from investors and our answers included:
Why can’t individual investors choose to opt out of RateSetter’s Provision Fund to obtain a better return?
Thanks to the Provision Fund, no individual investor has ever lost a single penny. That is a record we are proud of and want to keep it that way. Our model is based on all individual investors benefiting from the protection of the Provision Fund and we have no plans to change this.
When will P2P ISAs come into effect?
Innovative Finance ISAs will come into effect in April 2016. RateSetter will be ready for this exciting change.
As a lending platform do you perform stress tests?
We don’t perform stress tests like the banks – those are designed to establish whether banks hold the right level of capital. Instead, we conduct extensive scenario testing on a regular basis to ensure that we are correctly analysing and managing lending risk and setting the Provision Fund risk-weighted fees at the right level. You can read more about the benefits of the Provision Fund on our website.
Is the P2P industry well-regulated?
Peer-to-peer lenders are not banks and therefore should not be regulated like banks. However, we want a well-regulated, fair and competitive industry that provides a great service to customers.
Recognising the need for conduct standards and consumer protection, we were a founding member of the Peer-to-Peer Finance Association in 2011.
In order to give greater protection and clarity to consumers, RateSetter also proactively requested that peer to peer lending be regulated by the Financial Conduct Authority, and this regulation took effect from 1 April 2014. The regulation requires peer-to-peer lenders to have minimum operating capital requirements, meet client money requirements and adhere to a disclosure based regime.
RateSetter has been granted interim FCA authorisation, and is in the process of applying for full regulation.
Hopefully you'll find answers to your questions in our FAQ section.
Still need help? That's fine. Just call us on 0203 142 6226 or email [email protected]
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