Innovative Finance ISA (IFISA) inflows have been unaffected by the City regulator’s marketing restrictions, peer-to-peer platforms have claimed.
Under the new rules, which came into force in December 2019, platforms can only communicate ‘direct-offer financial promotions’ to certain investors.
These comprise high-net-worth or sophisticated investors, those receiving regulated financial advice or restricted investors – meaning everyday investors that pledge to put no more than 10 per cent of their portfolio in P2P.
However, despite fears that the new restrictions might discourage new IFISA investments, several P2P platforms told Peer2Peer Finance News that their IFISA inflows have actually increased in the run-up to this ISA season.
Stuart Law, chief executive of Assetz Capital, said there has been an uptick in deposits into the platform’s IFISA, adding, “we are expecting another strong ISA season overall.”
A RateSetter spokesperson also confirmed that its ISA deposits were growing, despite the new marketing restrictions.
Meanwhile, Mike Bristow, co-founder and chief executive of CrowdProperty, said the rule change has not affected his platform because it has been focusing on marketing to existing customers.
He added that P2P marketing is changing because “people are finding out about P2P through news items” as well as by word of mouth, rather than via traditional marketing channels.