Up to £10m of IFISA money hits the market
Up to £10m of Innovative Finance ISA (IFISA) money is up for grabs, as peer-to-peer lending platform Ablrate exits the market.
The asset-backed lender announced last month that it was winding down its platform, blaming the economic outlook, challenges with its loanbook and the regulatory trajectory.
Chief executive David Bradley-Ward told Peer2Peer Finance News that its IFISA wrapper held around £8m to £10m at the time that the winddown was announced. This creates an opportunity for other platforms to attract new investors seeking tax-free earnings on their P2P loans.
Narinder Khattoare, chief executive of Kuflink, said his platform would “absolutely” be a good home for Ablrate’s IFISA money. “We’re always open to taking money from other providers,” he added.
Read more: Are IFISAs an affordable alternative to SIPPs?
Ablrate said last month that investors wishing to withdraw any cash balance from an IFISA account to their designated bank account should follow the normal withdrawal process, although it highlighted that this would result in the loss of the tax-free wrapper.
To maintain the ISA wrapper, cash can be transferred out to a new ISA provider. Ablrate will waive its standard fee and cover the cost of the first transfer out from investors’ IFISA accounts in each financial year, and thereafter its usual charge will apply.
Read more: £781m invested in IFISAs during first year of pandemic