IFISAOn April 6, 2016, a new member of the isA family was born in constant growth. The Innovation Finance Individual Savings Account (IFISA) may have been containing P2P agreements since then. The ACF has decided not to apply the adequacy test to P2P agreements if they are not sold in an advisory manner; or requiring companies to take P2P agreements into account when they consider themselves independent; but each of these things will be taken into account and may change in the future. If you decide that your business will not be advised on P2P agreements now or in the future and you want to remove the authorization, you can submit a variation of the authorization request via Connect. 131The regulated activity covered by Section 53, paragraph 2, of the Regulation on Regulated Activities (Investment Advice), which is summarized as follows: advise an individual if the advice is as follows: in the 2014 budget, the government announced that it would introduce the Innovative Finance ISA (IFISA), which would allow the inclusion of peer-to-peer loan agreements (P2P) in an ISA tax wrapper. On March 16, 2016, legislation was passed that contains a provision that, on the whole, means that companies that currently have the authorization for the regulated «investment advisory» activity automatically have their permissions to add the new regulated «advice to P2P» activity effective April 6, 2016. To learn more about the new authorization for the regulated p2P agreements activity and what this means for your company`s authorizations to reflect these legislative changes, the FCA has sought advice on the updates it intends to take on its disclosure and advice rules and guidelines regarding P2P agreements. Currently, the regulations provide that platforms exchange funds of funds of funds of funds through peer-to-peer agreements separate from their own capital and that these be exchanged under B2B credit contracts that are not within the legal framework. P2P loans are regulated by the FCA, while some unregulated B2B loans are not covered by the plan. The amendment aims to simplify the design of customers` money for platforms that hold both B2B and P2P customers` money. «They [the respondents] argued that because of the difficulty of measuring the risks associated with P2P agreements, existing consultants would have a limited interest in advising P2P agreements and that these investments would probably not be «advised» if this situation did not change.» It is likely that IG companies will want to withdraw this authorization. All companies that do not intend to discuss P2P agreements may request a change in the authorizations to withdraw the authorization through this abbreviated form and send it to P2Padvice@fca.org.uk (P2P agreements are also called Article 36H agreements and should not be confused with P2B, where individuals lend to businesses or with B2B, where businesses lend to businesses.
More information and backgrounds on crowdfunding can be found under these links — FCA Crowdfunding Review, summary of crowdfunding regulation). Companies that currently hold the regulated «investment advisory» activity have automatically amended their authorizations to add the new regulated activity to the «Peer Council (P2P)) » from April 6, 2016. This implies that investors who place their money in a personal recommendation from a financial advisor in P2P investment proposals will «use the Financial Services Compensation Scheme» (FSCS), the FCA said. The aim is to «protect them from the failures of licensed consulting firms,» he said. The regulator also stated that retail investors will be able to make claims regarding the service they receive regarding advice on P2P agreements with the Financial Mediation Service. Businesses must, among other things, take appropriate steps to ensure that personal recommendations are appropriate for their client. As we indicated in our political statement on the separation of the