Crowdfunding platform wins IFISA backing
An Edinburgh-based crowdfunding platform has won regulatory approval to become an innovative finance ISA (IFISA) manager. Sharein, which was launched in 2011, will now be able to offer an extended range of services.
The online lendings market was transformed by Treasury reforms in 2015, which gradually took effect last year.
In November 2016 it became possible to hold bonds facilitated by fully-authorised platforms in IFISA wrappers. Prior to this, the IFISA were only used for peer-to-peer loans.
“Currently only a handful of platforms are authorised to operate as IFISA managers. We are very pleased to be able to allow our clients to offer bonds in an IF ISA.” said Jude Cook, chief executive and cofounder of Sharein.
The Financial Conduct Authority (FCA) published an interim feedback statement at the start of December highlighting that the IFISA is likely to appeal to a significant number of investors.
In addition to adding IFISA functionality to the platform, Sharein have also enabled investment in euros.
The first joint euro/pound platform will go live next week.
“Offering our product to a European market is a fantastic milestone for us and something we’re really proud of” said Andrew Pickett, CTO and Sharein co-founder.
“Internationalisation has been on our roadmap and we’re very excited about the launch of our first euro site next week.” added Cook.
Alternative finance firm Lendingcrowd, another Edinburgh-based business, announced yesterday it was also planning to launch its own ISA within weeks on the back of a record year.
The company, launched in 2012, said the launch of a tax-free savings vehicle would be one of the first in the peer-to-peer (P2P) lending sector.