Is an Isa the right wrapper for P2P lending?

Emma Ann Hughes

Emma Ann Hughes

You can imagine the comments from consumers: “I thought I was getting a nice safe Isa. I mean the government endorses Isas, don’t they? I didn’t realise it was lending money to other people. Is that what innovative finance is?”

I feel there is a place for P2P and there is a place for Isas, just as there is a place for champagne and a place for ice cream.

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I am just not sure it is a good idea to combine the two - or do the financial services equivalent of selling it in the fridge of a cafe next to a children’s play park.

Ice creams containing alcohol should be available, but not be within arm’s reach of those for whom they were not produced.

Innovative Finance Isas need to be clearly explained and marketed in the right places to individuals who understand the potential risk of this type of lending.

As a final note, my children and I love a white chocolate Magnum.

I highly recommend a white chocolate Magnum. I wouldn’t recommend giving the champagne version to primary school-aged children, though.