Innovative Finance ISA

The Innovative Finance ISA (IF ISA) is a significant milestone for P2P and demonstrates the maturing nature of the industry as it becomes an increasingly mainstream option in providing access to capital for businesses and individuals. 

The IF ISA brings a new level of credibility to P2P lending and will expand the industry’s reach. However, it remains vital that investors carry out their own due diligence when selecting a P2P platform from the broad range of providers available.

“While it is undoubtedly good news for savers that the Innovative Finance ISA (IF ISA) now exists as an investment option, we would urge savers to exercise restraint and not rush for the first options available,” said Jane Dumeresque, Folk2Folk CEO. “We would encourage individuals to research current and future options and assess the detail behind secured lending options.”

Numerous lenders plan to offer an IF ISA once they receive their full regulatory license from the Financial Conduct Authority (FCA).  The FCA is working through a backlog of applications, resulting in only a handful of lenders currently being in a position to offer the IF ISA.

Many platforms, like Folk2Folk, are operating under interim regulatory approval while awaiting full licence approval from the FCA.  So while they may be ‘ISA ready’ they are unable to offer this product until their full license is approved.

Over the coming weeks and months we expect to see a greater number of platforms receive full regulatory approval and proceed to offer the IF ISA, resulting in far greater choice for the savvy saver.

Folk2Folk expects to launch its ISA product as soon as full permissions have been granted by the FCA.