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Peer2Peer Finance News | March 30, 2017

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FCA approvals gather pace as CapitalStackers gets go-ahead

FCA approvals gather pace as CapitalStackers gets go-ahead
Suzie Neuwirth

THE FINANCIAL Conduct Authority (FCA)’s approval of peer-to-peer lenders is gathering pace, with CapitalStackers the latest platform to get the regulatory green light.

The Stockport-based lender matches property developers seeking finance with investors, who will receive returns of up to 20 per cent.

“We have always had a strong commitment to compliance, abiding by strict codes of conduct and giving our investors total transparency on every deal,” said Steve Robson, managing director of CapitalStackers.

“Becoming an FCA-approved lender is a lengthy and rigorous process and gives investors that extra comfort – it is the icing on the cake.”

CapitalStackers’ announcement comes mere hours after Cornwall-headquartered platform Folk2Folk confirmed its own FCA authorisation and two days after buy-to-let lender LandlordInvest.

Once platforms are fully authorised by the City watchdog, they can apply to HMRC for ISA manager status in order to offer the Innovative Finance ISA – the tax-free wrapper around P2P investments.

The flurry of new approvals will likely frustrate some of the larger P2P platforms, who have been waiting more than a year for their applications to be approved by the FCA.

The regulator has now authorised around 20 platforms, most of which are very small lenders. Out of the eight Peer-to-Peer Finance Association members – who collectively make up the majority of the market – only Lending Works has been approved.