16 December 2014

Charlotte Black, Head of Corporate Affairs at Brewin Dolphin discusses the inclusion of peer to peer loans as an Isa qualifying investment, "We are concerned that peer to peer lending products - by their very illiquid nature and time horizons - could inadvertently damage the success of the Isa brand which is universally understood as a simple and successful savings wrapper with immediate access.

As an investment adviser, with over £5 billion invested in stocks and shares Isa's on behalf of nearly 100,000 investors we have several concerns: the underwriting process of the P2P instrument would need to be analysed before advice could be given; as well as an overriding worry that part of an Isa could have a different term to encashment than the instant access to the 'ordinary' equity element already established, in addition to the different risks that would then be within the Isa. 

Introducing debt as a qualifying investment to the 'stocks and shares' Isa is bound to confuse and contaminate. We would suggest a separate P2P lending Isa is established to accommodate this new and potentially exciting investment medium. So there would become three distinct Isa categories - cash; equity and debt".


ENDS

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The opinions expressed in this article are not necessarily the views held throughout Brewin Dolphin Ltd. No Director, representative or employee of Brewin Dolphin Ltd accepts liability for any direct or consequential loss arising from the use of this document or its contents.

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