10 Sept, 2016 - 16 Sept, 2016
What we're reading in the news this week...
FCA Call for Input on Crowdfunding Closes. Industry Awaits Final Report
The Financial Conduct Authority’s (FCA) comment period for its review on current crowdfunding rules (introduced in 2014) is now closed. Aimed to be of interest to consumers, consumer organisations, peer-to-peer platforms, peer-to-business platforms and competitors alternative finance providers, the forthcoming FCA report will review its existing crowdfunding regulatory framework.
“Ecosystem” is the new watchword in marketplace lending
Interesting AltFi news article examines the key message that emerged from its recent AltFi Global Summit. The overall takeaway from the conference stressed the importance of supporting the ‘ecosystem’ (gatekeepers that aim to streamline investment process in P2P and marketplace lending) to ensure efficiency in a market place. The industry has suffered in the press since the dismissal of Renaud Laplanche former Lending Club CEO.
Alternative Finance in Europe Reaches €5.4b with 92% Growth
Recently published research from the Cambridge Centre for Alternative Finance indicates notable growth in alternative finance across Europe. Whilst the UK is still the largest market, with 81% market share, other countries are showing significant growth; in particular France, Germany, Netherlands, Estonia and Finland.
Understanding why property investors borrow
If you have an interest in investing in commercial property debt through P2P or otherwise, this helpful article from Proplend outlines why commercial property investors take on debt and the different role debt plays in the world of commercial property investment.
BoE holds rates at 0.25% but further cut possible later this year
The Bank of England’s Monetary Policy Committee voted unanimously to keep interest rates at 0.25% this month in light of stronger than expected economic activity following Brexit. However it has not ruled out further cuts later on in the year.
Bank holds interest rates but says 0.1% is possible
After last month’s record cut to interest rates, the Bank of England will be holding rates at 0.25% for this month but indicated the possibility of a cut to 0.1% in November. Citywire examines that this may mean for both the economy and savers.
As cash ISAs leave savers despairing, it could be worth taking a chance
With savers having a very rough time of it at the moment, Guardian Money takes a look at some alternative options. It looks at how your money could work harder but only if you are prepared to accept some risk. It focuses on premium bonds, high-interest current accounts, peer-to-peer lending, stock and share ISA, gold, wine and spread betting – outlining potential return against potential risk.
Cost of retirement income leaps 40 per cent in a year
BlackRock’s CoRi index indicates that in just one year the cost of a guaranteed retirement income for life is now 38.7% more than it was in June 2015. Taking inflation into account, from 12th September a someone aged 55 would need to save £27.75 for every £1 of guaranteed income in comparison to £19.46 - a rise of nearly 40% in just one year.
Pensions dashboard 'prototype' will be ready by March, says Government
11 pension firms have signed up to the Government’s new pension dashboard scheme. The dashboard will aim to enable people to view their pension savings in one place – including a state pension forecast and savings updates from pension firms. With 11 firms signed up the government are considering whether to introduce legislation to enforce all pension providers to take part. The prototype dashboard should be ready by March 2017.
Annuity rates plummet, making 2016’ worst year for payouts’
“2016 has been a truly awful year for annuities, with rates falling to all-time lows”. Data released by MoneyFacts show that the average annuity income for a 65-year-old retiree has fallen by 14.8% on a £10,000 purchase price and 15% on a £50,000 purchase price so far during 2016.
*Warning: nothing in this article should be construed as advice. Your capital is at risk