REBUILDING Society is the latest peer-to-peer lender to gain full authorisation from the Financial Conduct Authority (FCA), paving the way for the launch of its Innovative Finance ISA (IFISA).
The business lender still needs to get approval from HMRC in order to offer the tax-free wrapper, but it said it has started taking pre-registrations and will notify customers once it can on-board new accounts.
“Although we have been operating under FCA rules on interim permission since April 2014, being granted full authorisation helps us to continue building on the important relationships of trust we have with all our clients,” said the platform. “We are proud to have achieved this milestone ahead of many other platforms, which we believe is testament to our small but dynamic team, systems, processes and controls.”
Rebuilding Society applied for full authorisation in November 2014, demonstrating just how extensive the regulatory process has been. Most of the largest P2P firms are still awaiting approval from the City watchdog.
“At a time when monetary policy discourages investing for the future, we’re pleased to see more people taking control of their finances,” said Daniel Rajkumar, managing director of Rebuilding Society.
“A more congruent alignment of risk and reward is facilitated by transparent platforms like ours. For too long the traditional financial services industry has obscured who takes the risk and who takes the reward.
“So many new investors are surprised to learn about how much margin is taken between the demand and supply of capital, but after a few years of trialling our service, our most prolific investors continue to be our most supporting ambassadors.”