First IFISA product is revealed

In sixty days time, UK investors wil be able to put their money into the new IFISA (Innovative Finance ISA) and enjoy the risks and returns of peer-to-peer lending tax free.

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Source: Pixabay

The first provider to announce a product is RateSetter. Ratesetter is the second biggest peer-to-peer lender to individuals, according to the Liberum AltFi Volume Index, with a 20% market share, just behind Zopa.

Ratesetter CEO Weighs In On Compensation Scheme

Investments in peer-to-peer lending are not covered by the Financial Services Compensation Scheme (FSCS) which protects the customers of failed banks. Some critics in the industry - most notably the Yorkshire Building Society - have used this fact to suggest that P2P borrowers are inherently at risk.

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But Rhydian Lewis of RateSetter is fighting back. He points out the FSCS is funded by the deposit takers, and argues peer-to-peer can best protect its own customers.