We made our first post about Lending Loop not too long ago. It is Canada’s first true peer-to-company lending platform. Only one of us signed up.
Here I was happily reviewing new deals and receiving my interest payments on lendingloop.ca, when I received the following note:
“Lending Loop is currently engaged in discussions with the appropriate securities regulatory authorities to ensure that its model complies with applicable laws. As an act of good faith, we have decided to voluntarily and temporarily halt the posting of new loan requests on our website during this period. Lending Loop will, however, continue to fund loans with its own financial capital and/or the financial capital of investors of Loop Financial Inc. Additionally, Lending Loop will continue to service all funded loans during this period and all existing lending partners will be able to access their Lending Loop accounts, and withdraw available funds at no cost.”
Regulators - taking the fun and freedom out of investing since the beginning of finance. It’s unclear what the concerns are (I’m assuming anti-money laundering or a “protect the people” initiative) or how serious the issue(s) are. As I said in the last post, this venture remained in the Fun Money category, rather than a true investment vehicle category, just because of things like this.
We continue to believe there are gaps in the Canadian investing market, and we hope that the regulators strike a balance between innovation and protecting the people (and the Big Five Canadian banks of course).