10. Recent platform changes

  • What’s changing?

    From 8 May 2017, existing LendInvest platform investors that are able to confirm that they are high net worth, investment professionals or “financially sophisticated” will be eligible to continue to invest via our platform.

    If you are an existing investor and you cannot (or choose not to) confirm your eligibility, you will still be able to access your existing investments, but you will not be able to see information about new investments or make new investments. We will continue to service your existing investments as normal until each loan is repaid by the borrower. You will still be able to withdraw uninvested money from your account at any time.

    Prospective investors that wish to join the platform will be required to confirm their eligibility as part of the registration process. New customers who cannot confirm their eligibility will not be able to join the platform.

  • Why is LendInvest changing who can invest on the platform?

    As we move into the next stage of LendInvest’s development, we’ve taken the decision to remodel our online investment product, tailoring it exclusively to investors who are high net worth, investment professionals or financially sophisticated.

  • How does this change things for me, the investor?

    To see information about, and make, new investments via the LendInvest platform, you will now need to confirm that you qualify to do so.

    For individual investors:
    After logging into your online account, you will be asked to select which type of investor you are. Some individual investors will also be asked to complete a short online assessment. Investors that complete the assessment successfully will be able to view information about new investments. The confirmation process should take no more than a couple of minutes to complete.

    If you are able to confirm that you are eligible for future investments, you will be able to continue to use the platform just as before. If you are unable (or choose not) to confirm your eligibility for future investments, you will continue to have access to your online account but you will not be able to see new loans or make any further investments.

    For corporate investors:
    After logging into your online account, you will be asked to select which type of investor you are.

    If you are able to confirm that you are eligible for future investments, you will be able to continue to use the platform just as before. If you are unable (or choose not) to confirm your eligibility for future investments, you will continue to have access to your online account but you will not be able to see new loans or make any further investments.

    For all investors:
    For new investments, we will hold your funds in a new bank account. This will not affect investors who send us funds by direct debit, but if you prefer to add funds to your online account via bank transfer you will need to change the bank details that you have on record for us. Our new bank account details are available in your online account. From 8 May 2017, any funds you attempt to transfer to our old bank account will be sent straight back to you. For existing investments, our old bank account will continue to operate just as before, but you will not be able to upload new funds to that account.

  • How do I know if I qualify to continue investing via the platform or not?

    Our remodelled online investment platform is only open to individuals and corporates who qualify as high net worth or as investment professionals, and to individuals who qualify as being “financially sophisticated” investors. You will be asked to select which type of investor you are when you log in to your online account.

    For individual investors:
    There are three categories of individual investor that will be able to invest in new loans. We have summarised them below, but you’ll find full descriptions when you log in to your online account.

    To be a high-net-worth investor, one or both of the following should apply:

    • Your annual income for the last year has been £100,000 or more.
    • Not including your home or benefits (including pensions), you own assets worth £250,000 or more.

    To be a self-certified sophisticated investor, at least one of the following should apply:

    • You are a member of a network or syndicate of business angels and have been so for at least the last six months.
    • You have made more than one investment in an unlisted company in the last two years.
    • You are working, or have worked in the last two years, in the private equity sector or in the provision of finance for small and medium enterprises.
    • You are currently, or have been in the last two years, a director of a company with an annual turnover of at least £1 million.

    To be an investment professional, at least one of the following should apply:

    • Your work involves managing, operating or investing in alternative investment funds (AIFs).
    • You are a director, officer or employee of such an organisation, acting in your professional capacity, and your work responsibilities involve you investing in AIFs.

    For corporate investors:

    To be a corporate investor, you should be investing on behalf of a company or institution. A full description of this category is available when you sign in to your online account.

    For all investors:

    If you don’t fall into any of the above categories, you will be unable to invest in new loans on our platform.

    If you don’t know if you qualify to continue investing via our platform, you can contact a member of our customer services team who can help you. Please note that our Investor Relations team is not able to help you to confirm your eligibility, but they can guide you on where to go to understand more about the qualification process.

  • What does confirming my eligibility involve?

    In order to be eligible to invest in new loans, you will be required to certify your investor status. Some individual investors will also be required to pass a short assessment. This is clearly signposted in your online account.

  • I do qualify; what will happen to my account?

    We’re pleased that you qualify to continue investing with LendInvest. After confirming your eligibility, you can invest in secured UK property loans via our platform.

    The way that you access and navigate around your online account will not change, nor will any of the ways you can contact our Investor Relations team who are available to talk through any questions you might have.

    For new investments, we will hold your funds in a new bank account. This will not affect investors who send us funds by direct debit, but if you prefer to add funds to your online account via bank transfer you will need to change the bank details that you have on record for us. Our new bank account details are available in your online account. From 8 May 2017, any funds you attempt to transfer to our old bank account will be sent straight back to you.

  • I do qualify; has the form of my investment in new loans changed?

    Your investment will continue to be made by way of a receivables participation agreement. Before investing in a new loan, you will be prompted to sign up (online) to an investment management agreement with LendInvest Funds Management Limited. LendInvest Funds Management Limited is authorised and regulated by the Financial Conduct Authority as a manager of alternative investment funds (firm reference number 624223).

  • I do not qualify; what will happen to the loans I’ve invested in?

    Unfortunately, you will not be able to see information about, or make, new investments on our platform.

    However, you will still be able to access your existing investments as before. We will continue to service all of your existing investments as normal until each underlying loan is repaid by the borrower. You will be able to withdraw uninvested funds from your account at any time.

    At the point at which your last investment is repaid, we will pay all remaining uninvested funds to the last bank account we hold on file. Alternatively, we may write to you to ask you to withdraw any uninvested funds in your account. A short time later, your account will be closed permanently.

  • I do not want to have to confirm my eligibility. What happens to my loans?

    There is no obligation to confirm your eligibility, unless you wish to invest in more loans via the platform in the future.

    If you choose not to confirm your eligibility, you will not be able to invest in new loans. We will continue to service all of your existing investments as normal and your return will be paid until each underlying loan is repaid by the borrower. You will be able to withdraw uninvested funds from your account at any time.

    At the point at which your last investment is repaid, we will pay all remaining uninvested funds to the last bank account we hold on file. Alternatively, we may write to you to ask you to withdraw any uninvested funds in your account. A short time later, your account will be closed permanently.

  • What happens to my uninvested funds?

    You will be able to withdraw uninvested funds from your account at any time. If you are not eligible to invest on the platform, we may write to you to request you to withdraw any uninvested funds. Alternatively, LendInvest may transfer uninvested funds to the last bank account held on file.

  • When did the changes come into effect?

    The changes took effect on 8 May 2017.

  • Am I now at risk of losing money?

    These changes will have no impact on the way we service the loans which you have invested and the quality of service you can expect from the LendInvest team. We will continue to service all of your existing investments as usual until each underlying loan is repaid by the borrower. You will be able to withdraw uninvested funds from your account at any time.

    As has always been the case, repayments of interest and capital are not guaranteed and your capital is at risk. Please have a look at our page on managing risk if you would like learn more about these risks and how we handle them.

  • Do I need to do anything?

    There is nothing that you immediately need to do after reading this. Your portfolio of loans will continue to be serviced as usual.

    However, if you want to find out about and make new investments via our platform, you will need to confirm that you are high net worth, an investment professional or financially sophisticated.

  • Who can I speak to at LendInvest about this?

    Our Investor Relations team is available between 9am to 5.30pm Monday to Friday to help you understand these changes and guide you through them. Please note that our Investor Relations team is not able to help you to confirm your eligibility, but they can guide you on what the qualification process involves.

    You can call them on 020 7118 1900, email them at [email protected] or reach them online through the webchat function on your online account.