News Briefing - Crowdfunding, SME And Alternative Finance

the silicon chip inside her head

1.UK – P2P/IFISA

Professional Adviser runs an opinion piece predicting that the IFISA will suffer because of regulatory/governmental hostility and/or ignorance. 

"Charles Randall, chair of the Financial Conduct Authority (FCA), said that he had seen not only "very risky", but "sometimes fraudulent" investments within the Innovative Finance ISA.

It's not the first warning from the regulator, which has issued notes on the product previously and seems to be encouraging the government to back away from the product.

His comments come as the Treasury and HM Revenue & Customs are currently assessing whether the rules and regulations around the Innovative Finance ISA are fit for purpose.

As part of its review into the collapse of London Capital and Finance, the government departments are looking at the tax treatment of the ISAs and how the market has developed since its launch a mere three years ago. It will look at whether the rules need changing and whether the current permitted investments will remain the same.

Surge of investments

The figures on the Innovative Finance ISA uptake tell a story of their own. The most up-to-date figures only show the first two tax years of the product, but they show a jump in the amount investors put into the products from £36m invested in the first year to £290m in the following year.

While it's still not a colossal figure, as a result of the massive amount of advertising and marketing thrown at the products in 2019/s "ISA season" I'd expect to see those numbers leap even more when we get the stats for 2018/19.

The FCA has already announced plans to try to limit the amount the average Joe on the street can put into an Innovative Finance ISA.

Newcomers to P2P lending will be limited to having 10% of their assets in peer-to-peer loans unless they received financial advice. The move was branded "patronising" by some in the P2P industry, but is viewed as sensible by many others (the actual detail on how someone's wealth is calculated and how robust the system for declaring that you've not breached the 10% limit is more woolly).”

2. UK – P2P

An investment trust changes its name.

“The £1.1bn P2P Global Investments trust will change its name to Pollen Street Secured Lending with immediate effect.

The change in Company name had been approved by the Board of Directors in accordance with the Company's Articles of Association.

Pollen Street Capital, the firm’s investment manager, merged with MW Eaglewood two years ago, P2P GI’s original investment manager.”

3. UK – P2P

P2P Finance News on the unhappy anniversary of the Funding Circle IPO. 

“FUNDING Circle is coming up to its one-year anniversary as a publicly-listed company, after an eventful 12 months which has seen its share price plummet to less than a third of its offer price.

The peer-to-peer business lender began conditional dealings on the London Stock Exchange on 28 September before being officially admitted to the bourse on 3 October. It launched with an offer price of 440p per share, giving the firm a valuation of £1.5bn.

However, its market capitalisation as of 17 September has since dropped to £348.7m, with its shares now trading at just over 100p.”

4. UK – FinTech

Monzo ends its referral scheme as it hits three million users.

5. International – FinTech

Crypto mining scams in Mongolia.  Seriously.