Peer-to-peer lender FundingSecure launches IFISA
Source: William Warby, https://goo.gl/uLNfWF
Asset-backed consumer lender launches tax-free investments.
FundingSecure, a fully authorised consumer lending platform, has launched its Innovative Finance ISA product after receiving approval from HMRC.
The launch comes just too late for the recent tax cut-off, but investors will henceforth enjoy an annual ISA allowance of up to £20,000, up from the £15,240 in the previous tax year. As well as investing this year’s annual allowance, investors can also transfer an existing Cash or Stocks and Shares ISA over into an IFISA account.
FundingSecure’s loans are secured against a wide range of assets, including jewellery, property, classic cars, fine art and yachts. The platform advertises gross interest rates of 12-16 per cent per annum to investors.
Peer-to-peer lenders are required to hold full permissions from the FCA in order to offer IFISA investments. And while a reasonably large number of lenders have now been authorised, there remains an elephant in the room, or rather three elephants.
Funding Circle, Zopa and RateSetter – widely referred to as “the big three” of the peer-to-peer/marketplace lending space – continue to languish under interim permissions. Having now missed two ISA season deadlines, it’s unclear when these platforms will be authorised, and what’s holding them up.