Where will the next financial crisis originate? Note, we think it’s a question of “where” (and “when”), not “if”.
Responding to the recent hack of IT company SolarWinds, the New York State Department of Financial Services says that the next big financial crisis could come from a cyber attack.
During the SolarWinds break-in, hackers corrupted routine software updates that were downloaded onto thousands of organisations’ information systems.
“This incident confirms that the next great financial crisis could come from a cyber attack,” says superintendent of Financial Services Linda A. Lacewell. “Seeing hackers get access to thousands of organisations in one stroke underscores that cyber attacks threaten not just individual companies but also the stability of the financial industry as a whole.”
In 2019, DFS was the first financial services regulator to create a Cybersecurity Division to oversee all aspects of security regulation across New York’s financial services industry.
Loan Offer Latest
Historical Performance And IFISA Process Guide
That figure is the result of over £20 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 2020/21 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.
Risk: Security, Access, Yield
Do consider not just the return, but the security and the ease of access to your investment. We write regularly about these three key factors. Here’s one of several earlier articles on security, access and yield.