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LendInvest leaves the P2PFA




The Peer-to-Peer Finance Association (P2PFA) has confirmed that LendInvest has withdrawn its membership of the self-regulatory body.

The move followed LendInvest’s announcement that it had no short- or medium-term plans to add an Article 36(H) regulated platform to its investment offering.

The P2PFA said communication of LendInvest’s intention to withdraw from the P2PFA with immediate effect had been received and the lender is no longer a member of the association.

The specialist lender revealed earlier this year in its annual report that it had cancelled its application to the FCA to operate as a peer-to-peer platform, credit broking and consumer credit business.

It added that while these FCA applications can be reopened at any time, it currently had no need for these permissions.

Last week, the lender launched a retail bond, which will form its fourth funding source, adding to its online investment platform, two funds and four funding lines.

The 5.25% fixed rate retail bond will be listed on the London Stock Exchange and is specifically targeted to retail investors, although institutions can invest too.

“As we continue to scale the business, we’re increasingly looking to diversify our funding model and expand our capacity to lend to underserved borrowers, as well as to create new entry points to an attractive asset class that suits a broader range of investors seeking competitive risk-adjusted returns,” said Christian Faes, co-founder and CEO of LendInvest. 

“The launch of this bond allows us to achieve both of these ambitions, supporting future growth goals.”

LendInvest’s departure was announced as the P2PFA revealed its member platforms’ second quarter performance.

Cumulative lending from member platforms reached £8.39bn in Q2 2017, a slight drop on the £8.5bn lent the previous quarter. 

However, levels of new lending grew compared with last year, with £819m originated in Q2 2017 (Q2 2016: £658m).

“Comparing the performance of P2PFA platforms in the second quarter in 2017 with the same period in 2016 underscores the progress which peer-to-peer lending has continued to make,” said Robert Pettigrew, director of the P2PFA.

Robert revealed that of the £819m originated, over £478m had supported small business and real estate projects.

“The number of lenders and borrowers continues to rise, with more than 35,000 more investors participating than during the same period last year,” Robert added.

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