Funding Circle is the latest peer-to-peer lending business to become fully authorised by the regulator.
The move, announced today (24 May), means the P2P provider is a step closer to launching an Innovative Finance ISA, subject to approval by HM Revenue & Customs.
This comes weeks after one of the largest P2P platforms in the UK, Zopa, became authorised by the Financial Conduct Authority.
Many P2P providers have not been able to offer the new Isa because of delays to the authorisation process.
Launched in 2010, Funding Circle helps support small British businesses by letting investors, who get a return in the form of interest, lend them money.
James Meekings, UK managing director and co-founder of Funding Circle, said: “Our vision is to support thousands of people across the UK to earn stable, industry leading returns by lending directly to small businesses.”
He said the company is on track to become a mainstream investment choice for investors across the country.
Investors have earned an average 6.5 per cent on an annual basis through Funding Circle, scooping up a total of £116m of net interest over the past seven years.
Figures from the firm showed that more than 60,000 investors now regularly lend through Funding Circle.
katherine.denham@ft.com
