Savings & Investments

P2P platform Crowdstacker reveals IFISA details

Rozi Jones
|
19th February 2016
pig piggy bank business save

FCA authorised platform Crowdstacker has announced the details of its new Innovative Finance ISA that will be available to investors from 6th April 2016.

Investors will be able to enquire and apply online for the Crowdstacker IFISA as soon as HMRC regulation comes into force at the beginning of the new tax year.
 
Karteek Patel, CEO of Crowdstacker, said:

“Our investors to date have secured rates of return of around 5-7%, and now we can offer this in ISA format so they can also reap the tax efficiency benefits.
 
“Unfortunately, there have been a few signs of panic from other platforms, particularly in the last few days, as they wait for their full authorisation to come through which is needed before you can apply to offer an ISA.
 
“We know from when we went through this process in the first half of 2015, it is not really possible to tell when it will be complete until you receive the final paperwork. It is obviously incumbent on the FCA to ensure all platforms fully meet their criteria, and this takes time. So it looks like other platforms will just have to be patient.”

The Crowdstacker IFISA will enable investors to take advantage of earning tax-free interest on any of the investments featured on the platform. Currently, this includes Amicus, which is offering more than 6% over a three year term.
 
Karteek added:
 
“We only allow businesses with sound financial track records, strong management teams and the proven ability to handle large investment sums wisely, to raise funds on our platform.
 
“They also have to be looking to raise £1m or more to feature on our platform, so our screening process is designed to be more detailed and forensic. We just don’t think we’re the same as some other platforms. What other platforms do for individuals and smaller companies is obviously fantastic, but Crowdstacker believes it operates in a different market. We lend to bigger, stable and, yes, potentially more boring, businesses. But this is because we believe those types of business are more likely to offer a lower element of risk.
 
“We just wouldn’t even think of asking our investors to lend money to businesses that we think have a strong likelihood of failure.”

Related articles
More from Savings & Investments