Innovative Finance ISA launch update

By Luke OMahony

Last year, the Government announced that from 6 April 2016 it would be possible to include marketplace lending in a tax-free wrapper via an Innovative Finance ISA (IF ISA).

However, in order to offer an IF ISA, platforms must first obtain full authorisation from the financial services regulator. All the major marketplace lending platforms, including RateSetter, are still awaiting this authorisation.

RateSetter is fully regulated by the Financial Conduct Authority (FCA) and has been since 2014. We applied to move from interim authorisation to full authorisation in October 2015, and have been working very closely with the FCA since then.

We are looking forward to obtaining full authorisation very soon, but it is now clear that no major marketplace lending platforms will receive authorisation in time for 6 April. We’re continuing to work closely with the FCA to get into a position where we can launch the RateSetter ISA as soon as possible.

In the meantime, our customers can still invest and borrow exactly as before. Additionally, from 6 April the new Personal Savings Allowance (PSA) will also allow basic and higher rate taxpayers to earn up to £1,000 and £500 respectively, tax free.

We’ll keep you updated on developments. To be among the first to receive updates, you can join our ISA mailing list on our Innovative Finance ISA page.