INVESTMENT software provider ShareIn has built its own client money system for ISA managers.
It has launched ShareInPay after gaining authorisation from the Financial Conduct Authority (FCA) earlier this year to hold client money.
ShareIn, which offers technology platforms and compliance solutions for online investment firms such as peer-to-peer lenders, previously used e-money provider Mangopay for its own Innovative Finance ISA and those it manages for other firms.
But Jude Cook, co-founder of ShareIn – whose clients include CrowdLords and Triodos Bank – told Peer2Peer Finance News that the firm has been seeking its own solutions following HMRC concerns.
She said it was hard to find anything appropriate on the open market so the firm built its own proposition.
“To say holding client money is difficult is a little bit of an understatement,” she said.
“There are few things in the financial regulatory environment more important than holding other people’s money.”
An HMRC alert in January said the taxman was aware that some providers are using e-money and e-wallet firms to receive and hold investor subscriptions pending investment.
It warned that this is against the ISA regulations as cash must be held by a regulated deposit taker.