When you login to Prosper today you will notice a a big new message on the main screen. Today is the day that Prosper’s new bankruptcy remote vehicle, Prosper Funding LLC, goes into affect.
As the picture above says you need to take action. Until you “sign” the new agreement (by clicking on the checkbox) you will not be able to make any new investments in Prosper even if you have Automated Quick Invest setup.
What this means in reality is that when you invest in notes now you are buying them from Prosper Funding LLC and not from Prosper Marketplace Inc. The original agreement that you approved when you began investing was with Prosper Marketplace Inc. Prosper Funding LLC is what is known as a bankruptcy remote vehicle which provides an added level of protection for investor notes in the event of a Prosper bankruptcy. You can read the details of the new agreement here.
Peter Renton is the chairman and co-founder of LendIt Fintech, the world’s first and largest digital media and events company focused on fintech. Peter has been writing about fintech since 2010 and he is the author and creator of the Fintech One-on-One Podcast, the first and longest-running fintech interview series. Peter has been interviewed by the Wall Street Journal, Bloomberg, The New York Times, CNBC, CNN, Fortune, NPR, Fox Business News, the Financial Times, and dozens of other publications.