Peer2Peer Finance News
The UK's first peer-to-peer finance magazine for investors and the industry
  • Home
  • News
    • Personal Finance News
    • Industry News
    • SME News
    • Global News
  • Property
  • IFISA
    • IFISA Guide
  • Video
  • Open Banking
  • Cryptocurrency
  • Features
    • Joint Ventures and Promoted Content
  • Comment & Analysis
  • What is P2P?
  • Partners
  • Events
    • Past Events
  • P2P Power 50
    • Power 50 2020
    • Power 50 2019
    • Power 50 2018
    • Power 50 2017
  • Sign up to our e-newsletters
  • Magazine
  • Directory
  • Jobs
  • My Account
    • Manage Account
    • Change Password
    • Log In
    • Log Out
Bramdean (Bramdiva).
February 13 2017

Money&Co plans to launch IFISA by early March after gaining FCA approval

Kathryn Gaw Industry News, News Bramdean Asset Management, IFISA, Innovative Finance Isa, ISA season, Money&Co, Nicola Horlick, property -backed loan

MONEY&CO has received full authorisation from the Financial Conduct Authority (FCA) and is aiming to launch its Innovative Finance ISA (IFISA) by early March.

The peer-to-peer lender, founded by City superwoman Nicola Horlick, gained the regulatory green light two weeks ago, after a lengthy application process.

P2P platforms need approval from both the FCA and HMRC to offer the IFISA, although the latter is broadly accepted to be more of a formality. Money&Co applied to HMRC for ISA manager status a week ago, so approval is likely to be imminent.

Read more: Nicola Horlick’s Brave New World

In the meantime, Horlick’s firm Bramdean Asset Management already has ISA manager approval, so it would be possible to issue a Bramdean ISA with Money&Co loans. However, Horlick is planning to wait for Money&Co to receive its own ISA manager status.

“Our systems are already configured to deal with ISAs, so that’s not a problem,” Horlick told Peer-to-Peer Finance News.

“I expect we’ll launch the IFISA two weeks after we receive HMRC authorisation, so we will hopefully capture some of the ISA season effect.”

There tends to be an influx of money poured into ISAs as the end of the tax year in April approaches, as consumers look to take advantage of tax-free earnings from their savings and investments. The current annual ISA allowance is £15,240, although this is set to go up to £20,000 in the next tax year.

Read more: Lending Works IFISA hits £1m investor limit in just 24 hours

Read more: Nicola Horlick: P2P is less risky than stock market 

Money&Co is planning to offer a property-backed loan as its first investment within the ISA, which will have a net yield of seven per cent and a five-year maturity.

“Property loans are less risky and I think that seven per cent tax-free yield is very attractive, particularly as interest rates are so low and inflation is predicted to rise,” said Horlick.

“I get people asking me about the ISA all the time and I think all of our current lenders are interested in it. It will have a dramatic effect on the business.”

Around 23 firms are authorised as IFISA managers by HMRC, but only five have actually launched the product so far. Most of the UK’s largest P2P lenders are still waiting for FCA approval, having applied to the City regulator more than a year ago.  

Read more: IFISAs to make up 50 per cent of P2P lending by 2018 

Most UK SMEs struggle to access finance No end in sight for low savings rates as inflation hits 31-month high

Related Posts

magnifier

Industry News, News, Top 3

Trade association calls for more FCA scrutiny

FOLK2FOLK - Roy Warren MD - head crop (col)

Industry News, News, Top 3

Folk2Folk eyes £100m from institutions as it expands nationally

the acronym fca for Financial Conduct Authority concept represented by wooden letter tiles

Industry News, News, Top 3

FCA to publish initial supervisory work on consumer credit guidance

Popular posts:

  • Chancellor unveils recovery loan scheme
  • Budget outlines plans for £15bn of green bonds in 2021
  • FCA warns The House Crowd investors against using…
  • Government to launch replacement future fund scheme
  • BBB sets out further details on recovery loan scheme
  • Cyan Finance launches IFISA to help investors go green
Back To Top
  • Home
  • Contact
  • About
  • Team
  • Advertising
  • Subscribe
  • Privacy
  • T&Cs
  • Disclaimer

Follow Us on Social Media

© Peer2Peer Finance News 2020
• Additional design by