EXCLUSIVE: Charter HCP to launch P2P lender and assurance policy
Broker Charter HCP, fronted by industry stalwart Terry Pritchard, is set to launch a peer-to-peer (P2P) lender and assurance bond service.
The move comes at a time when the P2P sector has been hit by a wave of negative headlines and business failures.
The assured bond service is aimed at allaying investors fear around the P2P sector which Pritchard said he is “a big supporter of”.
The bond will see Charter HCP launch an assurance policy which will cover 80% of the client’s investment.
Pritchard said the scheme will be open to all P2P lenders which will be able to access it directly through Charter HCP.
The launch of the assurance policy will be followed by the P2P lender in March. The name of which is yet to be decided.
New regulations were put in place by The Financial Conduct Authority in December to protect investors, including more explicit requirements to clarify what governance arrangements, systems and controls platforms have, something the assurance policy has been set up to help with.
Pritchard said: “We’re delighted to be bringing both these products to market. They have been in the pipeline for sometime and we already have the back office set up.
“As a big supporter of P2P funding I’m delighted to be bringing some much need positivity to the market.
“P2P is a very credible way of raising money, but the procedure has to be run in a very robust manner. That’s something which we are going to do.
“We’re going to make sure we keep a very tight control with this.
“As a lender we want brokers to have confidence and know that we will stick to what we say.
“We’ll underwrite. We won’t be quick to say ‘no’ as no broker wants to hear no, they want to hear a solution.
“We’ll especially do development finance, we have brought a lot of expertise into our advisory board who are very well-known and will hopefully protect the investor and structure the deal in the right manner.”