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The Assetz Capital platform is no longer open to investment from individual investors. No new investments into peer-to-peer loans are possible and, as a result, no new funds should be deposited. The existing loan book relating to the Retail platform is now in run-off and this will, over time, deliver the return of capital to investors. Full information can be found here . Existing Retail lenders can still log in, view information regarding their account and loan holdings and operate their account in accordance with the information regarding the run-off provided on the link above. Please see this important message regarding the currency of the information on the pages on this website.

Summer budget recognises peer-to-peer as a true investment path

Summer budget recognises peer-to-peer as a true investment path

First of all, there was an announcement of a planned consultation that could strip tax relief from those paying into pension funds and just give the relief back in years to come by not taxing drawing from pensions, just like ISAs. Also, higher earners (£150k+) will have their tax relief on their pension savings scaled back from April 2016, but the consultation means that there could be a further snipping of tax reliefs for those investing in various ways.

As with most forms of investment, peer-to-peer lending carries a degree of risk to your capital; in this case if the borrower is unable to repay their loan. At Assetz Capital, we seek to reduce this risk to our investors by taking asset security on every loan.

It only makes the announcement of a planned third ISA, know as the ‘Innovative Finance ISA’, even more important for those seeking the potential for higher risk-adjusted returns on their investments.

 

What is an Innovative Finance ISA?

There’s very little detail been published on this so far, but from our dealings with the government on this, we understand that the new third ISA will allow for various types of ‘new finance’ investments and the first of these to be permitted is Peer to Peer lending with others like Crowdfunding (equity) under consultation.

Having been in discussions and planning stages for the past two years, it’s great to see firm timings and a name being given to facilitate this new wave of investment.

Alternative finance, or peer-to-peer lending, has been the financial sector’s darling for the past five years and it doesn’t seem to have waned. Having grown to a multi billion pound investment mechanism for many savvy investors, from high-net worths who recognised the potentially higher returns than a conventional ISA or investment product, to retail investors with personal investment goals.

 

So what does the new ISA mean for you as an investor?

We’ve previously talked about the potential impact of the new ISA, or NISA as it was called a few months ago. Unfortunately, we didn’t get too much further detail in the summer budget, but we do now know that the Innovative Finance ISA will arrive on 6 April 2016.

 

Free advice!

And the good news doesn’t end with the announcement of the Innovative Finance ISA. Over 50 year olds are now eligible for free government backed investment advice. A very positive, and much needed move.

The attraction of peer-to-peer investment and its potentially higher returns has brought various types of investors to Assetz Capital. However, it’s clear that the older generation, who hold more disposable income and investment potential, took peer-to-peer investment very seriously from day one. It has been very successful for many but it can work for so many more over 50 year olds.

That’s why we believe that the governments decision to offer free investment advice to over 50 year olds is a very positive step forward. Not only are there more options and different ways in which those with pension pots and investment potential can allocate their money, new finance sectors such as peer-to-peer lending can need some explaining.

We hope that the free advice has a good grasp of peer-to-peer investment, as enquiry volumes will be large. Especially as we approach 6 April and the new, Innovative Finance ISA arrives, indeed investment advisers can now request they are authorised by the FCA for advice on peer to peer lending.

It is clear that the government has put a lot of thought into the new changes, and understands the needs and importance of the market. Their support will help the P2P market continue its impressive growth in the years to come.

If you are interested in learning more about peer-to-peer investment, feel free to get in touch with us directly. 

As with most forms of investment, peer-to-peer lending carries a degree of risk to your capital; in this case if the borrower is unable to repay their loan. At Assetz Capital, we seek to reduce this risk to our investors by taking asset security on every loan.

- July 10, 2015

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