Crowdfunding And Peer-To-Peer For SIPP And SSAS
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If you’re currently a P2P (peer-to-peer) lender or you’re considering it, it’s important to keep up to date with the latest insight and information. Below are two excellent newsletters, but first, the news
We’re Delighted To Announce You Can Now Lend Your SIPP And SSAS Money On RateSetter
Having successfully completed thorough due diligence investigations, you can now lend your SIPP and SSAS fund on RateSetter, one of the UK's leading P2P platforms. By lending your SIPP money tax-free on RateSetter and the other P2P platforms that have previously been approved, you could increase your return on investment by as much as 45 per cent comparing with lending your cash.
RateSetter is one of the largest P2P lending platforms in the world. In a few short years, its truly staggering growth has seen it originate more than three quarters of a billion pounds of loans. It’s the first of the ‘anonymous’ P2P platforms to be approved for a full SIPP and SSAS, meaning you don’t choose loans and you don’t know to whom you’re lending. You simply transfer your money to RateSetter, and it does the rest on your behalf, paying you a fixed interest rate depending on the term of the loan you’ve chosen.
In Such A Fast Moving Market, It Pays Keep Up To Date With The Latest P2P Insights
AltFi Data – P2P News
AltFi Data is the world’s leading news site for the fast growing alternative finance space, which includes crowdfunding, P2P lending, marketplace lending and invoice funding.
There aren’t many financial markets that are growing exponentially. But P2P lending is one such market. Above is an illustration from AltFi Data showing that UK platforms have already originated more than £4 billion of loans, more than doubling the figure at the end of last year in less than eight months. Here is a detailed up-to-date breakdown of the largest P2P platforms.
4thWay® – P2P Risk Ratings Agency
4thWay® is a free comparison site and an independent risk ratings agency for P2P lending to help individual investors cut out the banks and compare the many risks of lending through each P2P lending platform.
The powerful P2P comparison tool from 4thWay® lets you easily compare interest rates, risks, costs and features of P2P lending websites. Its unique risk ratings are formulated by debt specialists and experienced investors. It pulls no punches, so expect candid reporting and trustworthy results. It’s well worth having a play with its P2P comparison tool.
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AJ Bell Is Often The Best Value SIPP For Stockmarket Assets
Over time, charges can wipe out a huge part of your fund. We like AJ Bell because there are no set-up costs. If you hold passive funds, which is our preference, or shares, investment trusts, EFTs, gilts or bonds, you pay one small fixed fee no matter how large your fund. And when you come to draw your benefits either as occasional drawdown or UFPLS payments, there's a small charge for the whole year no matter how many times you access your money (many SIPP and SSAS providers charge more than this for each payment). However, you should always compare charges in detail, because AJ Bell could be more expensive than other providers, depending on the type of stockmarket assets you hold.
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As SIPPclub neither advises on, nor arranges, nor recommends specific investments or strategies, we're unable to say whether a SIPP or SSAS or any investment within it is right for you. Ultimately, it’s your money and your decision, and you should only proceed once you're satisfied you've undertaken sufficient due diligence. If you need advice, you should speak to your trusted adviser, or you could find a local adviser from Unbiased.co.uk. Alternatively, we'd be pleased to introduce to a suitably qualified independent financial adviser.
Please read our full Terms which includes criteria for SIPPclub membership.
Crowdfunding And Peer-To-Peer Risk Warning
When a platform has been assessed and approved by a SIPP or SSAS operator, this does not imply that any loan or investment opportunity is endorsed in any way. A SIPP or SSAS operator's due diligence review is limited to ensuring the processes and procedures of the platform are in line with both FCA and HMRC principles. It's entirely your responsibility for carrying out your own due diligence on any loan or investment opportunity before agreeing to lend or invest your pension money on a platform. As a SIPP or SSAS operator will continually review platforms from a regulatory perspective, it's possible for a platform to become 'unapproved' if something changes.
With peer-to-peer lending, your capital is at risk if you lend to individuals and businesses. You may lose some or all of the capital lent if the borrower defaults and is unable to meet its liabilities. Historic loan default rates are not necessarily indicative of future default rates. In addition, lending is an illiquid investment, which means you may not be able to access the capital you lend for the duration of the loan period, even if the platform offers a secondary market. Investing in any business involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. Crowdfunding is generally targeted at investors who are sufficiently sophisticated to understand the risks and make their own investment decisions, based on their knowledge, experience and financial capacity. Neither crowdfunding nor peer-to-peer lending is covered by the Financial Services Compensation Scheme. The tax treatment of your investment is dependent on your individual circumstances and may be subject to change in the future. If you are unsure about the suitability of crowdfunding investment or peer-to-peer lending, you should consult a suitably qualified independent financial adviser.