Lending Works Achieves Full FCA Authorisation
Last week, peer-to-peer lending platform Lending Works announced that it has officially become fully authorised by the Financial Conduct Authority (FCA). Having operated, like the majority of peer-to-peer lenders in the UK, under interim permissions since launch, Lending Works has joined an elite group of P2P platforms fully authorised by the FCA.
Lending Works still has to wait some weeks before it gains ISA manager status, but that formality aside, the consumer-lending platform will be offering the much-sought Innovative Finance ISA before the close of 2016.
Lending Works CEO, Nicholas Harding, had this to say about gaining full FCA authorisation:
To receive FCA full authorisation marks a momentous day for Lending Works. This achievement is the culmination of what has been an intensive journey for us over the past year and vindicates all that we do and stand for as one of the UK’s leading P2P platforms.
Fair and accessible financial services that uphold the highest standards in both service and governance is a guiding principle of our business. Therefore, we have always supported greater regulation in this sector and welcomed the FCA’s review. The authorisation process is a positive move that will give better protection to consumers, ensure greater transparency and accountability in our sector and will ultimately help grow the profile of peer-to-peer lending in the UK as a genuine, strong and competitive alternative to mainstream, traditional lenders.
Lending Works Overview
Lending Works matches retail investors with individuals seeking personal loans, this accounts for 99% of Lending Works' borrower classes. The peer-to-peer lending UK platform boasts rigid security measures, including a reserve fund (provision fund) and insurance coverage for borrower defaults. Their insurance policy protects against fraud and cybercrime, loss of employment and accident, sickness and death.
Lending Works Innovative Finance ISA
Despite gaining full authorisation from the FCA, Lending Works must wait until the HMRC approves the peer-to-peer lender as an ISA Manager, allowing retail investors to invest in Lending Works' products through the tax-efficient IFISA wrapper.
Harding had this to say on the impending launch of their Lending Works ISA:
With full authorisation in hand, the next step for us is to launch our new ISA – something we have spent much of the past few months preparing for. Given the great benefits this new tax-free wrapper will bring, the level of enthusiasm among our lenders, and indeed consumers within the wider sector, for the new IFISA has been substantial. We very much look forward to delivering this new product imminently.