CEO reaction: FCA writing off P2P & IFISAs is an unhelpful, knee-jerk reaction

In reaction to the FCA’s warning against IFISAs and investing in “high-risk” vehicles like P2P and mini-bonds, Angus Dent, CEO of P2P business lending platform ArchOver, comments: “While I’m sure we can all agree that anyone investing in an IFISA should carefully consider their investment, the FCA need to be as equally careful with their choice of language as we are with ours. To insinuate that there’s no chance of getting your money back if you’ve invested it in mini-bonds or P2P is to ignore the £53 million we have returned to lenders when loans have matured.

“The FCA’s interpretation of the ‘evidence’ only serves to highlight gaps in its regulatory framework. If they only authorise companies where the prospect of returned capital is from companies operating within the FSCS scheme, where does this leave the hundreds of companies to which the FSCS cannot apply?

“Many P2P platform make a huge effort with credit analysis, monitoring and when borrowers have trouble in recovery. To simply write off a market that has lent £9 billion in total lending, by saying that as we’re outside the FSCS – and lenders won’t get their money back – is not helpful advice for investors. It is likely a knee-jerk reaction to the collapse of the mini-bond run by London Capital and Finance, which simply cannot be compared with the P2P industry.”