HiP’s unique FCA permissions
As we continue our HiP Token sale, join Kai Peeters – HiP CEO – as he discusses HiP’s unique FCA permissions and why they are so fundamental to the HiP business model.
*Our FCA Licence is under review whilst we work towards being live and public at the end of 2018.
Today, Kai Peeters talks about HiP’s unique FCA permissions, and about the journey taken to get here. For those unfamiliar with the Financial Conduct Authority – the FCA, this is the UK’s regulatory body responsible for protecting the public in the provision of financial services.
HiP’s founding research was done two years before the company was officially formed. A competitive analysis of all the crowdfunding and peer-to-peer platforms that existed was conducted and it was found that the regulatory framework for these companies was outdated, restricting the possibility for huge growth. This is because to sell equity all assets had to be placed inside an SPV, a Special Purpose Vehicle, before they could be traded.
HiP wanted to create a solution that would be quickly adopted and easy to scale quickly. So in 2016, the early stages of the founding of the company, one of the first tasks was to begin discussions with the FCA. HiP would attempt to re-write the permissions through a Sandbox application, allowing the company to trade debt and equity on a contract – and not placed in an SPV or limited entity. A successful FCA Sandbox application would allow HiP to take innovative products, services, business models and delivery mechanisms to the market in real-time.
After a prolonged 18 month discussion, HiP WAS granted permission to trade debt and equity on a contract*. A major achievement, and is the prequel to a Smart Contract.
So essentially, HiP is the first regulated company in the world that will trade debt and equity on a contract, eliminating the need for SPV’s and limited entities.
Why does this matter? It’s all about liquidity and cost of operations. Without having to set up an SPV every time a building is onboarded, HiP saves time and money. HiP can therefore trade debt and equity across buildings via the HiP ecosystem.
HiP’s FCA permissions have been the topic of much conversation and panel talks over the previous weeks. Last week HiP attended the Bitcoin CRE conference, focussed specifically on cryptocurrencies with regulation being a central topic of conversation.
WHAT WE AIM TO DO
HiP is the NEW Way
to finance property
Creating affordable financing packages
HiP will change the way property wealth can be accessed and afforded, opening the world of real estate to many more buyers, owners and investors.
Releasing value from their assets
HiP offers a first for home owners, developers, investors and buyers enabling them to take control of their property and the wealth within it.
Offering investment flexibility in high-yield property markets
The property market excludes a large part of the community from being able to buy and invest. HiP unlocks this investment market for all.
Initially, HiP Will revolutionise the world of property for four major markets within this sector:
FIRST TIME BUYERS
“A record number of first time buyers must find at least £500,000 to get a foothold on the housing ladder in London.” - London Evening Standard, 15th December 2017
Although HiP is not just about London, this headline tells a sad story. Combined with an average £80,000 debt for University graduates in the UK and we have a major social problem. HiP will help solve this by allowing investors to participate in first time buyers' home ownership, bringing the barriers to entry far lower than ever conceived possible before.
To release equity in a property today can only be achieved by either selling it entirely or taking out further debt. Having to pay interest to access wealth that already belongs to you is a deeply flawed model.
HiP will allow people to release equity into their own property bank account on the HiP platform; in multiple currencies and without incurring further debt or moving out of their home.
BUY TO LET LANDLORDS
HiP will allow buy-to-let investors to leverage their entire portfolio to expand their portfolios faster, cheaper and more efficiently.
The HiP platform allows investors to choose from multiple opportunities with incredible flexibility.