Zopa and P2P to be ISA eligible
Discussion
FT reports:
Peer-to-peer lending platforms are preparing to be included in individual savings accounts (Isas) in a move that is expected to act as a huge boost to the industry.
A powerful incentive for investors, the move should increase the number of people who choose to lend money via the sites, which in turn will mean more capital being available to individuals and businesses.
Following the consultation, any changes would not be likely to occur until April 2015, a year after the peer-to-peer industry comes under the jurisdiction of the UK’s new financial regulator, the Financial Conduct Authority.
“We have been asking for access to Isa funding for a number of years,” said Giles Andrews, chief executive of Zopa, the UK’s first peer-to-peer platform. “And we’ve already looked at what we will need to do. Inclusion would level the playing field. It’s a sign of the industry growing up and maturing.”
So far, platforms are unsure whether they will be eligible for inclusion in cash or investment Isas.
However, a source close to the industry said that it expected equity-based crowdfunding websites, such as Crowdcube, to be excluded on the basis that they should only be aimed at sophisticated investors.
Peer-to-peer lending platforms are preparing to be included in individual savings accounts (Isas) in a move that is expected to act as a huge boost to the industry.
A powerful incentive for investors, the move should increase the number of people who choose to lend money via the sites, which in turn will mean more capital being available to individuals and businesses.
Following the consultation, any changes would not be likely to occur until April 2015, a year after the peer-to-peer industry comes under the jurisdiction of the UK’s new financial regulator, the Financial Conduct Authority.
“We have been asking for access to Isa funding for a number of years,” said Giles Andrews, chief executive of Zopa, the UK’s first peer-to-peer platform. “And we’ve already looked at what we will need to do. Inclusion would level the playing field. It’s a sign of the industry growing up and maturing.”
So far, platforms are unsure whether they will be eligible for inclusion in cash or investment Isas.
However, a source close to the industry said that it expected equity-based crowdfunding websites, such as Crowdcube, to be excluded on the basis that they should only be aimed at sophisticated investors.
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