The lack of interest shown by professional advisers is proving no obstacle to demand for the new Innovative Finance ISA (IFISA) According to a report today on Unbolted.com, peer-to-peer platforms are optimistic and are preparing offerings for the April launch.
"Despite wariness amongst financial advisers about pushing the new Innovative Finance ISA, many peer-to-peer (P2P) lenders say there is strong interest in the new saving vehicle amongst new and existing customers" says the article, citing a study by FT Adviser.
Business adviser and blogger Steve Bicknell summarises the new IFISA thus.
"Its aim is to increase the number of loans available through crowdfunding by giving a tax incentive to those providing the money. There is greater risk for investors as their investments won’t be brought into the Financial Services Compensation Scheme but the returns for investors will be much higher than traditional savings accounts."
Unbolted also quotes JD Alois of Crowdfund Insider: “With over 22 million adult ISA in the UK and assets nearing £500 billion, the opportunity for P2P lenders is clear. For the P2P industry in general, it is just the messaging, and education, that must be addressed.”
Over the last fifteen years, the various forms of ISA have been one of the UKs most popylar investment, and we expect IFISAs to be one of 2016's big success stories.