coop
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P2P ISA
Feb 18, 2015 13:09:13 GMT
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Post by coop on Feb 18, 2015 13:09:13 GMT
I don't see this happening any time soon, or ever quite frankly.
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jjc
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Post by jjc on Jun 23, 2015 8:41:17 GMT
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gb007
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Post by gb007 on Jun 23, 2015 10:48:32 GMT
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bigfoot12
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Post by bigfoot12 on Jun 23, 2015 14:45:17 GMT
I agree that it makes it more appealing, but I'm not sure these are appealing at the moment. The fees together with the premium needing to be paid reduce the returns by 25% to 40%. Two caveats:- 1. It is quite likely that funds will be able to negotiate lower fees on the underlying platforms than individuals pay. I have not taken account of this. 2. I assume the premium to assets remains unchanged. I think that 2 is unlikely, if the premium persists more investment trusts will be launched so investors need to build in a capital loss (relative to direct investing).
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jjc
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Post by jjc on Jun 23, 2015 17:32:26 GMT
I was thinking more in terms of how they might appeal to the masses (& hence the impact they could have on money flowing into the platforms). This is the sort of thing that could kick-start P2P in a big way, well before individual investors start popping their direct p2p holdings into isas. There’s close to £1bn from those 5 funds alone, pre-ISA land (granted, some/much going to P2P platforms abroad), not hard to imagine it growing further very quickly.
For a discerning manual p2p investor I agree they are less appealing. That said (I go from memory here having looked at Ranger & VPC some months ago) the starting point IIRC for some of these funds’ investments can be in the 20-50% range, hence the net targeted dividends (after fees) of up to 10%.
You’ll still have to absorb the premium & I agree it’s always wiser to assume prices will return to NAV & build that into yr expected returns. But I’m not so sure the premiums will fall much (until everything does).
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andy2001
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Post by andy2001 on Jul 4, 2015 22:15:11 GMT
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kermie
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Post by kermie on Jul 4, 2015 23:42:26 GMT
It's been quite a saga. I shall remain ever hopeful, but equally I won't be holding my breath ;-)
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huxs
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Post by huxs on Jul 8, 2015 14:19:48 GMT
So its seems like todays budget have given the green light for a P2P ISA from Apr 16 but what does that mean.
Does anyone have any ideas how this will work ?
I currently actively use 8 P2P platforms (probably going down to 6 long term) how / will a P2P ISA allow me to still spread my lending across multiple platforms (and allow me to move funds between them) to ensure platform and loan Diversity?
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rogerbu
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Post by rogerbu on Jul 8, 2015 15:15:27 GMT
Here is the government's response to the ISA consultation. Enjoy PS. P2P ISAs to be a third type Cash, S&S & Innovative Finance |
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rogerbu
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Post by rogerbu on Jul 8, 2015 15:46:05 GMT
huxs asked the question 'I currently actively use 8 P2P platforms (probably going down to 6 long term) how / will a P2P ISA allow me to still spread my lending across multiple platforms (and allow me to move funds between them) to ensure platform and loan Diversity?'In my consultation response I argued that it was against the interest of investors to be forced to select one platform for a year's IF ISA! Choice and increased charges. The government appears to have ignored my response. As I read the Government's July 15 proposal, you will only be able to invest in one IF ISA in a tax year (same as Cash & S&S now). If this one IF ISA is with a Platform ISA Manager, then that is the only platform you will be able to invest your IF ISA in that tax year. If the IF ISA is being provided by a third party, Say HL or similar. Then they could have agreements with a number of P2P platforms, but you would be limited in choice. Overall if a third party IF ISA provider is involved, they will make healthy profits that we poor dummies must pay for in charges somehow! I still believe that this is a poor choice for investors.
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Post by westonkevRS on Jul 8, 2015 17:43:42 GMT
"The key policy design decisions that have been made in response to the consultation are to create a third ISA (the ‘Innovative Finance ISA’) to accommodate peer-to-peer loans..... with a few respondents noting that further regulation would be desirable" What's interesting is that our Friends the Yorkshire Building Society were the only bank to submit comments to the FCA. Let it go guys, let it go! t.co/geEhOj37NV
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james
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Post by james on Jul 8, 2015 18:49:06 GMT
It appears that there is an opportunity here particularly for the newer/smaller P2P firms to get together to start up a shared ISA manager so that they don't all have to independently bear the costs and so that consumers can just use the ISA manager layer to move money between the platforms. Might say tell Pq2P platform A to move £x to the ISA manager and then move from ISA manager the money into platforms B and C. All under one ISA so no restrictions and not a huge amount of overhead for the P2P platforms. Maybe on cost recovery pricing basis, trying to keep costs as low as possible? Has to beat lots of P2P platforms all doing it themselves.
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Post by Deleted on Jul 8, 2015 18:59:47 GMT
Still unclear on whether you will be allowed to 'transfer in' from existing cash Isa's to the new p2p Isa.
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james
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Post by james on Jul 8, 2015 19:48:20 GMT
That much is clear: the law will allow it, it's up to each individual P2P platform if they want to allow it. There's a lot of money in the ISA pots of past years so you can expect that most platforms will want to allow it
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jonah
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Post by jonah on Jul 8, 2015 21:17:22 GMT
That much is clear: the law will allow it, it's up to each individual P2P platform if they want to allow it. There's a lot of money in the ISA pots of past years so you can expect that most platforms will want to allow it I must have missed that part, but assuming your right this would be a much bigger incoming wall of cash compared to if they can't transfer. The number of people with several years cash allowance getting 2-3% who will no doubt get targeted marketing of 6 or higher could be huge in terms of amounts of money. There could be quite a focusing of money onto larger platforms though, both as they have the marketing budgets but also the ability to scale. personally I expect this will reduce my returns and continue my trend to diversify across platforms.
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