FCA approvals gather pace as CapitalStackers gets go-ahead
- Suzie Neuwirth
- On December 7, 2016
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.”
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.