More changes are afoot at RateSetter, as the platform appoints Target Group as its standby servicer.
Having a backup servicing arrangement in place is a requirement of FCA regulation. Peer-to-peer lending platform RateSetter’s answer to this stipulation was – prior to today’s news – to enter into a kind of sleep mode; a self-administered, orderly wind-down of the platform and its outstanding loan book. In a change of tack, RateSetter has now appointed Target Group – a standby servicer to many of the world’s major banks.
RateSetter has made a few alterations to the makeup of the platform in recent times. The company announced in February that it was investing a proportion of its provision fund balance via the platform, and subsequently decided to reverse course after criticism from investors. RateSetter is also transitioning into a more diversified style of platform, offering investors exposure to consumer, SME and property development loans.
Ian Larkin, Co-Group CEO at Target Group, commented:
“Ratesetter, is one of the market leaders in peer-to-peer lending so the fact they have chosen to appoint Target is a strong endorsement of our work. Ensuring a back-up servicer is in place is now an essential consideration for those working in the alternative finance market to reassure regulators, clients and investors alike that in the unlikely event of business interruption they have a safety net in place.”
Colin Hodges, Head of Investor Operations at Ratesetter, also weighed in:
“We have a responsibility to our customers to ensure that we provide them with a consistent and reliable service, and Target will help us to deliver this as we continue to grow. With their enviable track record and thorough knowledge of the industry, we are very pleased to have appointed Target to work with us in this way.”