P2P Lending – IFISA Investments & Providers
As things stand, only peer to peer lending (P2P) investments and ‘crowdfunding debentures’ are permitted within IFISA – we’ll focus on the former.
UK P2P lending is regulated by the Financial Conduct Authority (FCA), with all providers either fully authorised or operating on an ‘interim permission’ basis. All platforms with interim authorisation must be working towards stricter full authorisation requirements and can’t offer an IFISA until they have the FCA’s ‘full approval’.
Peer to peer providers with this approval are then only able to accept ISA ‘Subscriptions’ (new money paid into an ISA) and ‘transfers’ (funds already invested within another ISA in your name) once they have also been granted ISA Manager status by HMRC. So IFISA providers like Proplend are approved by the FCA and HMRC.
Proplend’s P2P platform connects investors directly to creditworthy borrowers – enabling investors to earn higher fixed income returns and borrowers to gain access to funding which may not otherwise be available. Proplend’s new IFISA will offer the same self-selection of loans, the same attractive interest rates and the same great security – tax-free.
Note: Our ISA is now freely available to all registered platform lenders as of 1 August 2017.