The Financial Conduct Authority (FCA) has attracted a lot of criticism for its oversight (or alleged lack thereof) of financial marketing. The investors in the failed London Capital & Finance (LCF) are rightly incandescent with rage at the loss of so much of their money – and much of the investors’ ire has been directed at the FCA.
So we’re pleased to note the launch of a revamped register of “approved individuals involved with regulated activities”. In plain English, the new register is a “vital service” – and should make it easier for investors to check on many issues, most notably on whether a salesperson is registered. Fingers crossed. We link to the FCA website below.
The enhanced Register has been tested with consumers and other users to ensure it is easier to use and understand.
Key enhancements include:
The FCA will review and improve the FS Register on an ongoing basis, to ensure it meets the needs of users.
Jonathan Davidson, Executive Director of Supervision, Retail and Authorisations, said:
‘The Financial Services Register is an important tool for both the consumers and firms who use it.
‘These changes will make it easier for users to navigate and understand the Register, and in doing so, help them avoid financial harm such as scams by unauthorised firms and individuals.’
Historical Performance And IFISA Process Guide
That figure is the result of over £21 million of loans facilitated on the site, as we bring individuals looking for a good return on capital together with carefully vetted small companies seeking funds for growth. Bear in mind that lenders’ capital is at risk. Read warnings on site before committing capital.
All loans on site are eligible to be held in a Money&Co. Innovative Finance Individual Savings Account (IFISA), up to the annual ISA limit of £20,000. Such loans offer lenders tax-free income. Our offering is an Innovative Finance ISA (IFISA) that can hold the peer-to-peer (P2P) business loans that Money&Co. facilitates. For the purposes of this article, the terms ISA and IFISA are interchangeable.
So here’s our guide to the process:
The ISA allowance for 2019/20 is unchanged from last tax year at £20,000, allowing a married couple to put £40,000 into a tax-free environment. Over three years, an investment of this scale in two Money&Co. Innovative Finance ISAs would generate £8,400 of income completely free of tax. We’re assuming a 7 per cent return, net of charges and free of tax here.
Once you have made your initial commitment, you might then consider diversifying – buying a spread of loans. To do this, you can go into the “loans for sale” market. All loans bought in this market also qualify for IFISA tax benefits.