First Innovative Finance Isa launches

First Innovative Finance Isa launches



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Crowd2fund has launched one of the UK's first Innovative Finance (IF) Isa (individual savings account).

The FCA-authorised firm launched the product at 8.42% APR, while other major players in the peer-to-peer (P2P) market are still awaiting authorisation.
 
Chris Hancock, CEO, said: “The introduction of the IF Isa is a huge step forward for savers and investors.
 
“The UK is the only market globally [which] has implemented a specific government savings scheme for innovation.
 
“London is clearly leading the global upgrade of financial services and alternative methods of finance, like peer-to-peer lending, are helping to bring the sector – and the UK economy more broadly – up to date with the needs of people today.”
 
P2P firm RateSetter has been regulated by the Financial Conduct Authority (FCA) since 2014 and applied for full authorisation in October 2015.
 
It is, however, one of a number of leading firms still waiting for approval.
 
RateSetter said on its website: “We are looking forward to obtaining full authorisation very soon, but it is now clear that no major marketplace lending platforms will receive authorisation in time for 6th April. We’re continuing to work closely with the FCA to get into a position where we can launch the RateSetter Isa as soon as possible.”
 
Funding Circle is in a similar position.
 
James Meekings, UK Managing Director and co-founder, said: “Our FCA authorisation process is progressing well and we’re looking forward to offering the Funding Circle Isa to customers as soon as we’re authorised.
 
“This will not be available on the first day of the new tax year as our review is still ongoing, however we continue to work closely with the FCA as it completes its review.”
 

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