ALMOST a quarter of HMRC-authorised Innovative Finance ISA (IFISA) managers do not offer the product.
Peer2Peer Finance News research has found that 93 firms are authorised by the taxman to offer an IFISA, but 22 of these firms are yet to make use of their permission. Among the firms with dormant IFISA permissions is challenger bank Monzo, who did not respond to requests for comment regarding its IFISA manager status.
In some cases, these ISA authorisations date back three years, without any IFISA product launches. Greyfriars Asset Management went into administration in October of last year but still holds IFISA manager authorisation. Peer Funding is no longer trading, but maintains its IFISA permissions.
Several IFISA managers, including Edaid, Transcendent Real Estate and More Lending Solutions appear to have paused their IFISA progress, with redirect or error messages appearing on their websites. However, a few of the 22 firms are in the process of rolling out an IFISA.
Peer2Peer Finance News understands that Fitzrovia Finance will be launching its first IFISA later this year. Madiston LendLoanInvest is also in the process of planning its first IFISA offering.
Among the firms that are already using their IFISA authorisation, some are managing the wrapper for other platforms. For instance, Gallium Fund Solutions is the IFISA manager for PropertyCrowd, and Copia Wealth Management operates the Absolute IFISA and the Westway IFISA.
Meanwhile, Hilbert Investment Services and Platform One both operate white label businesses for investment managers, which include IFISA management.
This article first appeared in the June issue of Peer2Peer Finance News, which can be read in full here.