Investments  

Tisa is lobbying for use of ISAs in P2P lending

Mr Vine-Lott said he had spoken to the Treasury and set up a taskforce, encompassing distributors, administrators and platforms, to look into how rules on the matter should be defined, with the intention of inviting peer-to-peer lenders into discussions soon.

Mr Vine-Lott said he had spoken to the Treasury and set up a taskforce, encompassing distributors, administrators and platforms, to look into how rules on the matter should be defined, with the intention of inviting peer-to-peer lenders into discussions soon.

Mr Vine-Lott said he welcomed George Osborne’s suggestion in this year’s Autumn Statement, in which the chancellor said the government would discuss relaxing rules on where stocks and shares Isas could be invested, with crowdfunding ventures likely to be the main beneficiaries of any consultation into the issue.

He added: “The FCA’s intended regulation of the industry is likely to pave the way for using Isas for peer-to-peer lending, but our recommendation is to use the stocks and shares allowance.

“First, I do not see how such an investment could be defined as a deposit under the terms set out in the FCA and Isa handbooks. Secondly, it will surely make a bigger difference to peer-to-peer schemes if investors are allowed to put more money into them.”

The peer-to-peer lending element would only be offered for stocks and shares Isas, not their cash counterpart.

Mr Vine-Lott said it was essential to offer beleaguered savers an alternative in the current low-interest rate environment and would also support the chancellor’s aim to reinvigorate small and medium-sized enterprises.

Adviser view

Ashley Clarke, director of Staffordshire-based Needanadviser.com, said: “I am very confident that progress will be made if Tisa has set up a working party because the organisation is good at getting both the regulator and the Treasury to participate in these matters. Given the fact we are in a world of low interest rates, P2P can offer a reasonable rate and this area is not a million miles away from corporate bonds and sovereign debt. The UK has a huge savings gap and we must make both Isas and pensions more flexible.”