Peer to Peer ISA Deadline Tough

Peer to Peer ISA Deadline Tough.

Last month, the Chancellor of the Exchequer, George Osborne, following his announcement in Budget 2014, confirmed that peer-to-peer ISA option consultation period would start.

The consultation will look at feasibility for peer-to-peer lending in ISAs, effectively offering yet another source of finance for would be borrowers and an alternative investment fund type for ISA savers.

The original delivery for ISAs to be able to offer peer-to-peer funds was April 2015.

This raises a concern as to the likely delivery of regulated peer-to-peer ISAs by April 2015 when the consultation is only just in motion. 

Comment

Existing Peer-to-Peer lenders will be hard pushed to deliver a regulated ISA by April, if the consultation results are not seen until the New Year.

We suggest this delivers a hug opportunity for existing ISA providers to launch peer to peer lending platforms within existing ISA platforms.  Watch this space but do not be surprised if you existing stock ISA provider delivers a peer to peer fund solution before existing peer-to-peer services.