Almost a fifth of peer-to-peer lenders with Innovative Finance ISA (IFISA) permissions are not offering the tax-wrapper.
Analysis of HMRC’s latest ISA manager list by Peer2Peer Finance News shows there are 63 P2P lenders with IFISA permissions, but 11 of these firms – equating to 17.5 per cent – have either closed down their product or are yet to launch.
These include collapsed platforms such as Lendy, which went into administration in May last year, and MoneyThing which went into wind-down in December despite still being solvent. Other firms no longer offering IFISAs include Landbay and ThinCats, which have closed to retail investors in favour of institutions.
There are other P2P platforms that have permissions but do not mention the product on their website, such as education financer Lendwise and personal loans provider Madiston LendLoanInvest.
Dutch property investment platform Crowdinvesting B.V also has permissions but does not appear to have launched in the UK.
Another P2P lender, Formax Credit, which offers business loans, still has a link to invite interested users to register for its IFISA for the 2017/2018 tax year.
Similarly, Belfast-based More Lending received Financial Conduct Authority approval in 2017 but a note on its website says it is still working on its launch.
Buy-to-let mortgages, business and consumer lender ShareCredit has permissions and mentions the IFISA on its website but the link through to the product is not live.
There are 98 IFISA-approved firms on the list in total, with the rest made up of firms providing property investment funds and mini-bonds.
Some appear to have suspended their IFISAs in the wake of the Financial Conduct Authority’s temporary marketing ban on mini-bonds.
A note on Platform One’s website, which describes itself as a premium investment service for high-net-worth investors, has note on its website stating it has temporarily suspended its alternative investment service “due to the current scrutiny of these asset classes by the FCA.”
There are also brands on the list such as challenger bank Monzo that have IFISA permission but are yet to launch a product.
Read more: Who wants to be an IFISA millionaire?