To encourage savings and to support SMEs, innovative finance investments have been made eligible to hold within an ISA. However, the market is still young and how investable they are for ordinary savers remains to be seen. This article explains the mechanism of the Innovative Finance ISA and discusses how investable IFISAs are in terms of market developments and associated regulations. The article concludes with a snapshot of the peer-to-peer (P2P) market.
Following the release of the FCA Policy Paper PS14/04 on the 7th March, Daniel Kiernan summarises and analyses the main thrust of the regulations for interested parties such as platforms, providers considering raising money in this way or advisers who already have clients who invest in crowdfunding.
The UK Crowdfunding market was worth approximately £350m at the end of 2012, driven by consumers looking for alternative investment opportunities and startup firms looking for alternative sources of capital. But Crowdfunding itself is a very broad church, encompassing many different types of investments and asset classes, each with their own unique benefits and risks.
The FCA released its Consultation Paper CP13/13: “The FCA’s regulatory approach to crowdfunding (and smiliar activities)” on the 24th October. This article sumarises and analyses the main thrust of the proposals for interested parties such as platforms, providers considering raising money in this way or advisers who already have clients who invest in crowdfunding.