Ethical investment lending platform Charm Impact hopes to launch into the regulated peer-to-peer lending space in the second quarter after being onboarded as an appointed representative (AR) of Rebuildingsociety.
The platform, which provides peer-to-business loans to clean energy entrepreneurs in developing economies, is going through the process of passing Rebuildingsociety’s due diligence before being submitted, and then waiting approval for, authorisation from the Financial Conduct Authority (FCA).
Charm Impact has been using the £273,520 it raised in a Crowdcube campaign in November to prepare for its launch by spending funds on onboarding as an AR and to pass the FCA’s capital adequacy test.
Gavriel Landau, co-founder and chief executive of Charm Impact, said the platform will launch between the middle and end of the second quarter and plans to launch an Innovative Finance ISA (IFISA) later in the year.
“Impact investing in the P2P lending space is a big opportunity,” he said.
“Having impact investments in the P2P lending space can demonstrate anyone can make a meaningful impact with their money, seeing where it is going, who it is helping, how much carbon dioxide emissions are being dropped and helping entrepreneurs in developing markets grow business, all at the same time as earning a financial return.
“There’s an increasing amount of excitement around impact investment and it’s a very exciting time to be formally launching in a regulated capacity and to see how becoming regulated will help the company grow from strength to strength.
“An IFISA is something we’ll look into later this year. We know it’s definitely an appealing option to offer to P2P investors so we’re looking to see how we can have that set up once we’re regulated.”
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“We’re excited about working with them,” said Daniel Rajkumar, managing director of Rebuildingsociety.
“There’s a new impetus for the industry to collaborate in ways that help to choose better outcomes for customers.”