My view is that “Agency Theory” is always at work here, i.e. maximising profits as an example, be it P2P platforms or investors. True that FS has an autoinvest function that can “lure” investors to invest into “undesirable” notes.
Question is who is to blame for setting up “one own self to autoinvest”.
History tends to repeat itself, the minibond saga, Hyflux high yield perpetuals/preference notes/shares saga and maybe the “autoinvest”
A Rhetorical Question; someone dig a big hole (e.g ratings of EEE), another one setup autoinvest(which walking towards the HOLE) and not did not “opt out” and fell into the HOLE. Do you blame the digger of the HOLE or the walker (for closing to close his eyes and not opt out).
An analogy, do you blame the gun manufacturer (I.e FS listed a EEE rating and published a fact sheet before listing) or the shooter (who did not see the fact sheet and opt out and he/she set up autoinvest to begin with)
As usual, Caveat Emptor (I pity the chasers of high yields without doing proper Due Diligence). Autoinvest at your own risk!