FCA proposal to change rules for crowdfunding platforms
27 July 2018
If you are covering today’s FCA proposal to change to the rules for crowdfunding platforms, and in particular the FCA’s commitment to addressing a potential gap in protections for customers buying a mortgage through loan-based crowdfunding, please see the following comment from Gemma Harle, managing director of Intrinsic mortgage network, part of Quilter.
Gemma Harle says:
“Many might just associate crowd-funding with their friend’s charity fun-run page but crowdfunded mortgage lending is becoming a popular option for home-buyers due to their favourable rates.
“The FCA’s announcement today, that it is looking to address the potential short comings in the protection afforded to consumers which use crowd-funded mortgage or home finance products, is laudable.
“Although these innovative forms of lending are providing a fantastic array of options for consumers, they can be higher risk than a traditional mortgage both for investors and consumers. The FCA needs to make sure regulation stays up to date, and the customer is fully informed of it, so that they can enjoy all the possible protections available when entering into this kind of lending arrangement.”
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Notes to editors:
Intrinsic is part of Quilter plc. Quilter is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.
On a ‘go forward basis’, Quilter oversees £ 111.6 billion in customer investments (as at 31 March 2018).
It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset and single strategy investment solutions; and discretionary fund management.
The business is comprised of two segments: Wealth Platforms and Advice and Wealth Management.
Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.
Advice and Wealth Management encompasses the financial planning network, Intrinsic; Old Mutual Wealth Private Client Advisers; discretionary fund management business, Quilter Cheviot; and Old Mutual Wealth’s multi-asset investment solutions business.
The Quilter businesses will be re-branded to Quilter over a period of approximately two years following separation from Old Mutual:
- Intrinsic to Quilter Financial Planning
- Private Client Advisers to Quilter Private Client Advisers
- The Multi-Asset business to Quilter Investors
- The UK Platform to Quilter Wealth Solutions
- The International business to become Quilter International
- The Heritage life assurance business to Quilter Life Assurance
- Quilter Cheviot will retain its name.
On 19 December 2017, Old Mutual Wealth announced that it has agreed to sell its Single Strategy asset management business to the Single Strategy Management team and funds managed by TA Associates. The proposed transaction is subject to customary closing conditions, including regulatory approvals.
Quilter is part of Old Mutual plc, a FTSE 100 group that provides investment, savings, insurance and banking. For the year ended 31 December 2017, Old Mutual reported an adjusted operating profit before tax of £2.0 billion. For further information on Old Mutual plc and the underlying businesses, please visit the corporate website at www.oldmutualplc.com.
This press release is for journalists only and should not be relied upon by financial advisers or customers.
Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.
This communication is issued by Quilter plc. Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270. Registered in England.