FOLIO Investing provides an alternative trading marketplace (aka ATS) which allows owners of Lending Club issued notes to offer those notes for sale to other Lending Club members. Lending Club investor members can use the ATS to manage their liquidity or purchase existing Lending Club notes. To access the ATS, you must open a brokerage account with FOLIO Investing. The brokerage account that you open, as accessed at http://www.Lending Club.com/invest/trade/, will not hold notes or money on your behalf except on the day you conduct a transaction on the ATS, and will return any money or notes that you acquire through the transaction to your Lending Club account prior to the close of business on the day of the transaction.
FOLIO Investing charges 1% of the face amount of a note as a transaction fee for providing the ATS service. Lending Club pays FOLIO Investing a fixed monthly fee in any month that the note transaction fees collected do not meet a mutually agreed upon minimum amount. Further information about the note trading platform is available here. Further information about the risks relating to the notes is available here.
Note from FOLIO Investing:
FOLIO Investing does not endorse, review, recommend or approve Lending Club’s web site, Lending Club notes or Lending Club borrowers, and has no role in the origination of a Lending Club loan or the issuance of a Lending Club note. All information about Lending Club notes comes from Lending Club, and is published as received by FOLIO Investing without review. When a Lending Club Note is posted for sale on the ATS, the borrower’s Credit Score has been pulled within a month of the posting date, but all other information is as of the date the listing for the loan underlying the Note was posted on Lending Club’s platform. The payment history on the note is likely the only other information you will have when making an investment decision about whether to purchase the note through the ATS. All notes are extremely high risk investments and are only appropriate as a speculative transaction. Because the notes were not available to residents of all states when issued, FOLIO Investing limits accounts to residents of states where the notes have the status of registered securities with the applicable state securities authority. You cannot purchase, sell or hold notes in any account you have with FOLIO Investing if you reside in other states.
Securities products and services offered through FOLIOfn Investments, Inc. Member FINRA/SIPC
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