"The incredible demand we’ve witnessed in the nine months since launch underlines the level of interest that financial advisers and their clients have shown for this type of solution"
Octopus says it is the first adviser-focused P2P platform to be fully authorised, and is now developing its Innovative Finance ISA with a view to introducing it later in the year.
Octopus Choice was launched in consultation with financial advisers back in April 2016, to coincide with the FCA’s decision to broaden the scope of advisers’ permissions to include P2P lending.
Every loan is secured against residential property at conservative loan-to-values (averaging 60%) and is underwritten by Octopus’s lending team, Octopus Property. Since its launch in 2009, Octopus Property has lent over £2.2bn with a default rate of less than 0.1%.
To provide investors with additional protection, Octopus also invests 5% in each and every loan at first loss.
Richard Wazacz, Head of Octopus Choice, said: “We’re delighted that the FCA has decided to grant Octopus Choice full authorisation. It’s the culmination of some really positive dialogue with them over the past few months, and a hugely important milestone that will give renewed confidence to our fast-growing base of advisers and investors.
“The incredible demand we’ve witnessed in the nine months since launch underlines the level of interest that financial advisers and their clients have shown for this type of solution, especially at a time of low interest rates and rising inflation. The authorisation from the Regulator and prospect of an Octopus Choice ISA will only help bolster that demand.
“While we’re currently working on an ISA version of the product that will be made available later this year, our primary focus is on giving the best possible service to the thousands of financial advisers and investors we’ve already attracted. We’ve achieved a huge amount in a very short time, but there’s still plenty we’d like to do to ensure Octopus Choice remains the simplest, safest and most transparent P2P product in the market.”
