MoneyThing gains FCA approval after tweaking business model
- Suzie Neuwirth
- On March 24, 2017
MONEYTHING has gained full authorisation from the City regulator after tweaking its business model, paving the way for the launch of its Innovative Finance ISA (IFISA).
“This is a significant milestone for our business and the result of just over 18 months’ work that involved the scrutiny of every aspect of our business,” said the peer-to-peer business lender in a statement on Friday.
MoneyThing said it will no longer be able to pre-fund loans and will be introducing new lender terms for new loans, as a result of the Financial Conduct Authority (FCA)’s approval.
A full update on the changes and how they will affect lenders will be provided shortly, the company said.
A number of platforms have had to tweak their business models to comply with the FCA. As Peer-to-Peer Finance News previously reported, Landbay also had to stop pre-funding loans ahead of gaining authorisation.
Read more: MoneyThing to allow pre-bids on loans
The next step for MoneyThing is applying for IFISA manager status from HMRC, so that it can offer the tax-free wrapper. This is broadly seen as a formality and usually takes a few weeks.
MoneyThing did not indicate a specific timeframe for its IFISA launch, but said it “will release further information in the coming months”.
“Gaining our full permissions to operate is a real achievement for MoneyThing and it is the result of a lot of hard work over a long time,” said managing director Ed Pearce.
“Full authorisation will build credibility with our lenders, borrowers and partners which can only help to support our growth plans. It’s onwards and upwards for MoneyThing!”
Read more: MoneyThing faces shortage of borrowers
Read more: Lenders work to prevent autobots