What is a SIPP?

A SIPP gives you the autonomy to make your own investment decisions with your retirement savings. This is in contrast to more traditional pension schemes where you generally rely upon a third party to make the investment decisions on your behalf. Each SIPP will have its own scheme rules which will set out the range of investments that may be held.

Contributing to a pension can attract certain tax benefits. In addition interest and other income generated inside a pension wrapper are typically not subject to taxation, which means you are able to retain all of the interest you earn. Tax treatment will depend on your individual circumstances and may be subject to change in the future.

Can RateSetter investments be held in a SIPP?

People with a SIPP are granted a lot more flexibility, and can hold a wide range of investments within their pension. HMRC has set out guidelines for what can and can’t be included.

In addition, individual SIPP operators will have their own policies and rules on which investments their beneficiaries can hold.

RateSetter is one of the first P2P platforms to be available through a SIPP. We’ve made this possible by teaming up with a number of forward-thinking SIPP operators. Investors with a SIPP operated by one of these platforms will be able to benefit from the normal features and interest rates of the RateSetter platform combined with the tax advantages of a pension.

In addition, if you or your company have a Small Self-Administered Scheme (SSAS), you can also invest those funds into RateSetter.

RateSetter welcomes enquiries from other SIPP and SSAS operators who would like to learn more about peer to peer lending.

Who are SIPPs for?

SIPPs are for anyone who wants to take more control of the way they save for retirement. There are no restrictions on who can open a SIPP but a SIPP may require more work than a standard pension, as you’ll need to be more hands on with your investment portfolio, because as their name implies the schemes are self-invested. In this way SIPP account holders are given much more control over their financial future.

Retirement is often something we take for granted and is commonly swept under the carpet to be dealt with a later date. The SIPP structure offers a way of planning for retirement in your own way.

How do SIPPs work?

There are a large number of SIPP operators in the UK. Each of these will have its own product features, investment options, and charging structures. When choosing which SIPP operator to use, investors will need to decide which one best meets their own particular requirements, and in some cases may appoint a financial adviser to help them decide.

A number of SIPP operators (currently four) enable clients to allocate a part of their pension assets to the RateSetter platform. This means that it is possible to diversify a pension portfolio to include peer to peer loans alongside other investments such as stocks and shares and funds.

Investments made by a SIPP onto the RateSetter platform operate in a very similar way as a RateSetter Everyday account. Account holders can make investments into any of the four RateSetter markets in the usual way, and access your SIPP account online at any time. It is important to note that any deposits or withdrawals into SIPP accounts are made between RateSetter and your SIPP bank account – the SIPP bank account is set up by your SIPP operator.

How do I get started with a SIPP?

If you would like to invest part of your self-invested pension plan onto the RateSetter platform, it will be necessary for you to open a SIPP with a provider that has an agreement with RateSetter.

If you already have a SIPP with another provider it is possible to open a second SIPP, or to consider a SIPP transfer (please speak to your current provider as there are likely to be charges involved in doing so).

Currently, we’re working with:

Other things to consider

Saving for retirement requires careful consideration. In many cases investors will benefit by seeking support from a financial adviser to help select an appropriate investment portfolio taking into account factors such as their return objectives and risk appetite. A financial adviser can also help to decide which SIPP operators may or may not be most suitable.

RateSetter are very pleased to have been approved for SIPP investment by the operators listed above and we currently have funded SIPP accounts with each of these. However, RateSetter makes no recommendations or statements on behalf of any of the providers; nor do we offer any guidance or advice to investors on how to choose their provider.

If you have any questions in relation to investing with RateSetter from a SIPP or a SSAS please contact us on: [email protected]

Protection provided by the Provision Fund

Investments with RateSetter are protected by the Provision Fund which provides a buffer against poorly performing loans. RateSetter aims to maintain the Provision Fund at a level intended to cover all expected future loan defaults. The Provision Fund has a 100% track record: to date, every individual investor has received the returns they expected. We are proud of this track record. However, this isn't a guarantee for the future and your capital and interest are at risk if the Provision Fund is depleted by increased borrower defaults .

The Provision Fund is made up of payments received from every borrower, based on RateSetter’s assessment of their creditworthiness when the loan is granted. Each investor is directly matched with one or more borrowers, but as the Provision Fund effectively spreads risk across the whole loan book, investors are exposed to the performance of the RateSetter loan book as a whole - not the performance of the specific loans they are matched to. Hence the performance of the RateSetter portfolio as a whole is important to each investor as the Provision Fund is designed to cover any non-performing loans across ALL types of lending.

We established the Provision Fund in 2010 to manage risk and offer greater predictability to investors, allowing them to focus on the rate they require for their money. We're proud that the Provision Fund has ensured that not one of our 58,646 individual investors has lost a penny of the £2,185,788,318 tht has been lent to date. Despite this track record, we would like to be clear that the Provision Fund does not provide a guarantee, your capital and interest are at risk if the Provision Fund is depleted by increased borrower defaults, and investments are not covered by the Financial Services Compensation Scheme.

Interest Coverage Ratio:


Size of Provision Fund:

This is made up of £12,127,409 Provision Fund cash £9,725,708 in Expected Future Provision Fund Inflows

In the past, RateSetter intervened with some of our customers in restructuring our wholesale lending. As a result, RateSetter now controls three businesses. In an exceptional case, one of these businesses went into financial difficulty and RateSetter has taken part of the loan to that business onto its own balance sheet. We did this because the loan was outside RateSetter’s credit policy and we believe that it was appropriate, in this specific case, to stand in front of our investors. The performance figures above reflect actions that RateSetter has taken in this case. Separately, RateSetter has acquired a stake in a fourth business. All four businesses have outstanding loans with our investors. New investments and any reinvestments may be matched with one or more of these loans.

Need some help?

If you have a SIPP or are considering starting one and would like to find out more information about investing through RateSetter we'd love to hear from you.

call: 020 3142 6226

email: [email protected]