Fewer than one in five (18 per cent) financial advisers would invest, or have already invested, their own money into peer-to-peer lending schemes, research from Yorkshire Building Society shows.
An online poll of 101 financial advisers between 12 and 26 May found that 82 per cent believe customers do not understand P2P lending rules.
It also found just 4 per cent have invested in P2P, while another 14 per cent would consider investing their own money.
Last week the government confirmed it plans to introduce from next April a third type of Isa, the Innovative Finance Isa, allowing for up to £15,240 tax-free investment in the P2P sector.
Around 45 per cent of advisers polled by YBS believe interest in P2P will grow as new savings rules come into effect and 20 per cent have already seen increases in enquiries from clients about investing in P2P over the last 12 months.
However, 62 per cent said they would never invest their own money in P2P despite the potentially attractive rates on offer, while another 20 per cent were undecided.
Earlier this year, the Financial Conduct Authority warned that a ‘post-implementation review’ of the new regulatory framework covering crowdfunding platforms next year could see rules relating to peer-to-peer lenders toughened to reflect increasing risks to consumers.
Andy Caton, executive director at the society, said that while investing in P2P can offer strong possible returns, people need to be fully aware of the possible risks and costs involved.
“It is clear that many financial advisers have concerns about consumers’ understanding and are unwilling to invest their own money in P2P despite the potential returns.
“It is good that the government has decided to create a new and separate type of P2P Isa instead of linking it to the existing stocks and shares option, which will help to limit potential confusion among consumers.”
emma.hughes@ft.com
