UKCFA 36H

Simple Crowdfunding is pleased to announce that we have joined forces with a number of UK Crowdfunding Association (UKCFA) members and supporters to create the UKCFA 36H Group, a sub-group for peer-to-peer lending.  

Simple Crowdfunding - Founding Member of the UKCFA 36H Group  

A number of member platforms and supporters including Abundance, Adempi, CMS, Dacxi, Medici Capital and Rebuilding Society have come together to progress the peer-to-peer lending marketplace.

Members and supporters of the UKCFA’s 36H group will meet once a month to discuss best practices, lobbying activity, horizon scanning, data analysis, and more. 

The group was established in response to the growing regulatory pressures on peer-to-peer lenders, and the need to coordinate responses.

“Now that peer-to-peer lending has been through a recessionary period and a phase of ‘regulatory hardening’ we hope that it can appeal to independent financial advisors as well as discretionary fund managers.  Part of our objective is to help position peer-to-peer lending as a more mainstream product as it matures." 

To learn more about the work the UKCFA is doing, or to become a member or supporter, visit www.ukcfa.org.uk or email [email protected]    

What is Peer-to-Peer Lending?

Peer-to-peer lending uses online processes to create a competitive advantage over traditional financial firms.

If you invest in a peer-to-peer loan, you lend money to the company raising finance.  You are like the bank, loaning money for a fixed term, for a fixed return.   Interest payments will be made periodically or, in some cases, at the end of the loan term.  The loan is sometimes secured against an asset, such as a property, and often on a first charge basis (first in the queue for repayment).  

One of the main advantages of peer-to-peer lending is that the investor can invest using an ISA wrapper.  The ISA that can be used is an IFISA (Innovative Finance ISA).  The benefit is that these IFISA’s are exempt from both income and capital gains tax on the investment returns, and no tax is payable on money withdrawn from the ISA scheme. 

The terms peer to peer lending, debt and bonds are often muddled up and whilst in principal all are lending funds, there are significant differences from the technical, payment and regulatory perspectives.   

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