FULLY FCA REGULATED P2P PLATFORM CROWDSTACKER ANNOUNCES ITS IFISA
AS PANIC RISES AMONGST NON-REGULATED PLATFORMS
FULLY FCA authorised platform, Crowdstacker, today announced the details of its new Innovative Finance ISA that will be available to investors from 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.
Unlike some other as yet not fully authorised platforms, including the top four, Crowdstacker already has the necessary FCA permissions in place so there will be no delay to its IFISA product.
“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” commented Karteek Patel, CEO of Crowdstacker.
“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 – more than twice the return from a current average cash ISA.(1) The table below illustrates the potential relative earnings for the full annual limit of £15,240 invested in a Crowdstacker IFISA against typical cash and tracker ISAs.
|
Investment type
|
Rate
|
Value at end of first year
|
|
Typical cash ISA (1)
|
2.6%
|
£15,636.24
|
|
FTSE Tracker fund ISA(2)
|
- 7%
|
£14,173.20
|
|
Amicus 12mth term
|
4.32%
|
£15,898.37
|
|
Amicus 18mth term
|
5.43%
|
£16,067.53
|
|
Amicus 36mth term
|
6.39%
|
£16,213.84
|
Crowdstacker only offers investment opportunities in businesses that have passed its strict due diligence process. This means that only the best, hand-picked opportunities, according to Crowdstacker, are featured, and each are structured with a variety of safe-guards aimed to protect investors’ money.
“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” explains Karteek.
“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."
(1) State of India Bank offering 2.6% on minimum £15,000 investment, correct as at 12noon on 16th February 2016 http://www.moneysavingexpert.com/savings/best-cash-isa#fixed is protected by the FSCS and by consequence offers lower risk
(2) FTSE fall of 7% over 2015 as quoted in Daily Mail article on 21st December 2015 http://www.thisismoney.co.uk/money/investing/article-3368880/How-FTSE-100-end-2016.html
