Funding Circle Receives Full FCA Authorisation
With Funding Circle now fully authorised by the Financial Conduct Authority (FCA), the wait is on to see how popular its IFISA offering will be. It just needs HMRC approval to see whether its growing pool of 60,000+ investors jump at the tax-free investment possibilities.
The particulars will follow its current investment services of a 7.20 per cent a year estimated return, lending to British businesses, options to diversify, early access to money through marketplace selling.
The platform announced its intentions to launch its ISA back in July 2015, not long after the Government announced the existence of the IFISA. But, the FCA’s thorough review process has left it waiting over a year to see the ISA come to fruition.
“Today’s news comes as Funding Circle becomes the largest peer-to-peer or direct lending platform in the UK by cumulative amount lent,” the firm confirmed in its blog.
It is now the third of the ‘big’ peer-to-peer platforms to win authorisation after Lending Works, who was the first and already launched its product back in February, and Zopa, who were authorised just two weeks before Funding Circle. Ratesetter is the last of the platform giants awaiting approval. Ratesetter’s Founder and Chief Executive Rhydian Lewis recently told the financial times: “We are anticipating being able to launch an ISA in the coming months . . . We believe we are very close to the completion of our [authorisation] process.”