On 20 March 2019 we will refresh the Investor Terms to reflect the updates that we have flagged in your recent monthly statements and via RateSetter Notices. We are also making some updates to implement changes to laws and regulations.
The updates include the way the Market Rate is calculated and adding the flexibility for the Rolling market to fund the same types of loans as those currently funded from the 1 Year market. We also need to make some changes to the Investor Terms to reflect updates to laws and regulations, including recent changes to ISA laws. The details, what they mean for you and how the Investor Terms are changing are set out in the table below.
We are taking this opportunity to refresh the Investor Terms with a new structure and simpler language to make them easier to read. We have also removed redundant information. The refreshed Investor Terms include a link to our Privacy Policy and information about our Complaints Policy.
A copy of the updated Investor Terms and Key Investor Information documents reflecting the changes will be available on our website at https://www.ratesetter.com/investor-terms from 20 March 2019.
You can continue to find information about our products and services on our website at https://www.ratesetter.com/.
If you’re happy with these changes, you don’t need to do anything and can continue to use your RateSetter account as normal. If not, you have the right to end your agreement and close your RateSetter account(s) without charge (although the early access fee to exit your matched loans and withdraw your funds will still apply). If you want to do this, please contact us before 20 March 2019. If we haven’t heard from you by then, we’ll assume you’ve accepted the changes and they’ll happen automatically.
| What are we changing? | How are we changing it? | |
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The way the Market Rate is calculated
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We’re moving from taking the weighted average of all the rates transacted between 6am and 10pm on the previous day, to the weighted average of all the rates transacted during the previous 28 days | |
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Introducing ‘Interest Accrued’ and ‘Interest Received’
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The Rolling Market can now fund loans that repay your money plus interest at the end of the loan term. If you are matched to one of these loan types, you will see a new transaction on your monthly statement called Interest Accrued. This is interest that you will accrue monthly until it is repaid by the borrower, at which point it becomes Interest Received
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Clarifying the order in which your investment will be matched to borrowers to form loans
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We’ve explained that due to our system matching and loan formation rules, your money may be matched differently depending on whether you are investing new money or reinvesting existing funds | |
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Clarifying the order in which your loans will be sold, should you use the “Release your investment” function
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We’ve clarified that although your loans will be sold on a ‘last in, first out’ basis, this is subject to certain exclusions such as you can’t release any loans on the same day they’ve been matched or reinvested | |
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Renaming the Transfer Fee
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As part of our drive for simplification, we’ve renamed this the Early Access Fee, as this more clearly explains when the fee is charged | |
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ISA tax advantages to continue after death
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As a result of changes to law, ISA investors now continue to benefit from the tax advantages of an ISA after their death, during the administration of the estate until the date of closure of the ISA | |
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Clarifying when and how we can make changes to the Investor Terms
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As our agreement has no fixed duration, we may need to make changes during its term. We’ve included a new section in the Investor Terms which explains when and how we can make changes | |
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How you and we can close your RateSetter account or end our agreement
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Though we hope you won’t want to do so, we’ve included a section to explain how you and we can close your RateSetter account |