Some P2P platforms may enable investors to offer their loan opportunities prior to the loan was completely paid back, nevertheless the investor’s capacity to promote their loan relies on another investor’s curiosity about that loan. Investors might find it hard to promote their loans in the event that debtor was experiencing almost any stress, for instance negative information states or a duplicated belated repayment history. Some lending that is p2P could also suspend loan purchases to guard brand new investors from buying that loan where there is certainly an understood issue.
Danger of performing activities that are unlicensed
Some platforms may contend because they only offer loan services and provide information services that they do not engage in regulated activities. Nonetheless, the Securities and Futures payment (SFC) might take a view that is different consider that the certification needs underneath the Securities and Futures Ordinance (SFO) is caused. Platforms/platform operators carrying on company in regulated activities underneath the SFO with out a licence can be a offense underneath the SFO. Be sure to relate to the part below ” just How are P2P lending managed in Hong Kong?”.
Investment proposals on platforms may lack standardisation and offer less information than securities within the general public areas, rendering it much harder for investors to comprehend the potential risks.Read More »Liquidity risk/lack of additional marketplace liquidity when it comes to loans