Financial System Reform – Recommendation 18- facilitate crowdfunding for debt – SME finance – Marketlend well poised for the future.
Financial System Review – click for the full report
Government should continue its current process to graduate the fundraising regime to facilitate securities-based crowdfunding. This would enable entities to make public offers of securities to a potentially large number of people (the ‘crowd’). The risks associated with crowdfunding investments would require some adjustments to consumer protections, including capping individuals’ investments and clearly communicating the risks.
Government should then use the policy settings for securities as a basis to assess wider fundraising and lending regulation to ensure it facilitates other forms of crowdfunding, including peer-to-peer lending.
A range of crowdfunding models are emerging globally. Crowdfunding facilitates the funding of projects or businesses, where small amounts of money are raised from the ‘crowd’ via an online facilitator (or platform).68 Financial crowdfunding models include:
- Securities-based crowdfunding, where the ‘crowd’ invests in an issuer in exchange for securities — either equity (crowd-sourced equity funding, CSEF) or debt.69
- Peer-to-peer lending, where an online intermediary facilitates lending between individuals, often in the form of unsecured personal loans, potentially to fund a business.70
Objectives
- Graduate fundraising regulation to facilitate innovations in fundraising emerging from new technologies and ensure policy settings are consistent across funding methods.
- Provide firms, particularly small and medium-sized enterprises (SMEs), with additional funding options.
Marketlend – New Theme Picture
Marketlend new theme picture
We have also have established our new theme picture, meaning new kids shining light on a stagnant banking industry
Trust Documents executed by Trustee, Marketlend, Tyndall Capital and Jardine Lloyd Thompson
In a first for the peer to peer industry, Marketlend from inception is operating a securitisation trust structure to offer investors the most secure and protected funding opportunity available.
Master Trust Deed, Security Trust Deed, Sale and Origination Deed, and Back Up Servicer Deed were executed on 24 December 2014.
AET, a wholly owned subsidiary of IOOF, who manages approx. 123 Billion of wealth funds in Australia was appointed the Trustee, and Security Trustee.
Jardine Lloyd Thompson, listed on the UK stock exchange will perform the role of back up servicer.
“We have structured our lending platform with a solid foundation, that will be built to last. From the mom and dad investor to the large financial institutional investors, all investors are protected and purchase a secured bond where the underlying asset is a loan in the trust or part thereof if the investor wishes. These notes will have the traditional trading aspects to them, and whilst liquidity take a while to build, the notes are tradable instruments in the capital markets.” Leo Tyndall, Founder and CEO.
An interview with Marketlend CEO – Leo Tyndall
Interview with Marketlend CEO – Click here to listen
Marketlend is a new Australian lending platform founded and led by Leo Tyndall.
Launched in the same week that the Financial System Inquiry (FSI) of Australia released its “blueprint” for the Australian financial system for the next ten years, this new platform shows how innovation in financial products is global.
We were lucky enough to get a chance to speak to Leo in the week of his launch.
Leo provides us with an interesting insight as to how Marketlend is a necessary addition to the Australian business finance marketplace and what makes its offer so distinctive.
The FSI report is generally encouraging towards crowdfunding and new and novel approaches to finance and we can be sure that where Leo’s team lead others will certainly follow.
You can stream the interview from here, our Podbean account or download it for later listening
Marketlend in the Press
Banking Day article
Marketlend jostles in P2P sector
12 December 2014 7:02am
Marketlend, another P2P style lender, is making its debut in the Australian market.
Leo Tyndall, a former head of capital markets in Asia for UniCredit, is the founder and CEO. Paul Roffey, a former JP Morgan and NAB banker, is the second director.
Marketlend is a subsidiary of Tyndall Capital Pty which holds the Australian Financial Services Licence.
Business loans (especially working capital, including a line of credit linked to invoices) are the initial target product with personal loans to come.
Like others in the segment, Marketlend is not really a peer to peer lender as its investment is confined to a well-heeled few and professional investors. However, there is a bidding platform to match investments with loan requests.
Retail investors may be able to join later.
One difference in the Marketlend model is a market for secondary trading in investments in loans.
ThinCats is another recent entrant in this niche, while RateSetter and SocietyOne have more of a consumer loans focus.