ablender
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Post by ablender on Apr 5, 2016 14:30:34 GMT
I think it is time to come out with a set of questions to put forward to each P2P platform which will offer IFISA's. The set of questions I currently have are the following: 1 Are there any fees? 2 Are there any tie-ins? 3 Are IFISA loan parts tradable on the SM? 4 Will I have access to the whole loan book of the platform? 5 Can IFISA accounts sell to non-ISA accounts and vice versa? 6 Is the IFISA account flexible? 7 Do you accept transfer-in of Old / New money? 8 How will transfer outs work? 9 Do I have to subscribe new money to this platform in order to create an IFISA account, or can I just use it with money transferred in? 10 Will accounts run off same login as an exisiting account or will a new one be required? (thanks ilmoro ) The aim of this thread is not to get the answers but to come out with the questions. If I missed any questions, please let me know. Once we have the questions we can open individual threads on each platform as each will have different answers. |
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james
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Post by james on Apr 5, 2016 14:56:38 GMT
6 Does the account offer theses flexible ISA features: 6a. withdrawing and replacing of current year money without using more of the current year allowance for the replacement subscription. 6b. withdrawing and replacing of past year money without using current year allowance. 6c. when replacing past year money, continuing to allow this replacement if all current year money has been transferred elsewhere with an ISA transfer. 6d. if none of those flexible ISA features, please say which flexible ISA features are offered or none if none are offered. 6e. when both current and past year money are paid in and a transfer out of current year money is requested, please describe how the platform will determine whether all current year money is available to transfer. One potential issue here is that an investment may be purchased when only current year money has been subscribed and even though there is sufficient cash in the account to do the full subscribed amount transfer, the platform may conclude that the investment was purchased with current year money and has not been sold so the transfer request must be declined because all current year money cannot yet be transferred. The reason for this suggested revision is that most parts of the flexible ISA package are optional and these questions are designed to cover areas where I know that some places do or don't provide the feature or where I know of potentially difficult interactions like which investments were purchased with current or past year money. Question 6e is particularly likely to result in trouble for anyone trying to answer it.  |
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ablender
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Post by ablender on Apr 5, 2016 16:17:21 GMT
Thanks James,
Another question that I thought of is:
Do you allow partial transfers of the ISA money?
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ablender
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Post by ablender on Apr 5, 2016 16:19:41 GMT
6 Does the account offer theses flexible ISA features: 6a. withdrawing and replacing of current year money without using more of the current year allowance for the replacement subscription. 6b. withdrawing and replacing of past year money without using current year allowance. 6c. when replacing past year money, continuing to allow this replacement if all current year money has been transferred elsewhere with an ISA transfer. 6d. if none of those flexible ISA features, please say which flexible ISA features are offered or none if none are offered. 6e. when both current and past year money are paid in and a transfer out of current year money is requested, please describe how the platform will determine whether all current year money is available to transfer. One potential issue here is that an investment may be purchased when only current year money has been subscribed and even though there is sufficient cash in the account to do the full subscribed amount transfer, the platform may conclude that the investment was purchased with current year money and has not been sold so the transfer request must be declined because all current year money cannot yet be transferred. The reason for this suggested revision is that most parts of the flexible ISA package are optional and these questions are designed to cover areas where I know that some places do or don't provide the feature or where I know of potentially difficult interactions like which investments were purchased with current or past year money. Question 6e is particularly likely to result in trouble for anyone trying to answer it. 6e I am having trouble to understand it in the first place. I need to go over it again and leave it to sink in. Any other people suggesting possible questions?
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rogerbu
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Post by rogerbu on Apr 5, 2016 16:43:39 GMT
Specific to an Aggregating IFyISA provider (or maybe not)
Which platforms can be accessed?
Can funds be used across platforms with the IFyISA?
What happens if the provider drops a platform from its list of platforms?
Force Sell?
Allow to run to maturity? etc
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ablender
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Post by ablender on Apr 5, 2016 17:40:55 GMT
Specific to an Aggregating IFyISA provider (or maybe not) Which platforms can be accessed? Can funds be used across platforms with the IFyISA? What happens if the provider drops a platform from its list of platforms? Force Sell? Allow to run to maturity? etc I will be specifically targeting individual platforms myself, but your's is not a bad idea. Someone will need to collate the questions which relate to these aggregates.
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Post by crowdstacker01 on Apr 5, 2016 17:52:07 GMT
Below are Crowdstacker answers to the questions posed so far. I'll keep looking to see if there are any others we can provide responses on.
Q. Any fees?
A. No entry and no annual fees payable
Q. any tie-ins?
A. you are tied in for the term of the loan(s) that you choose to hold in your IFISA. These terms vary so you need to check.
Q. Are loan parts tradable on the SM?
A. We operate a match bargaining system which allows lenders to transfer their loans to other lenders on the platform.
Q. Will I have access to the whole loan book?
A. Yes
Q. Can IFISA accounts sell to non ISA accounts and vice versa
A. You can move money from an IFISA to a non ISA account. At present it is not possible to move your peer to peer loans from an IFISA into a non ISA.
Q. Is the IFISA account flexible?
A. Not at present. We are looking in to including this functionality further down the line.
Q. Do you accept transfer in of Old/new money?
A. You can move old ISA money into a new IFISA account and it will not count as this years ISA allowance. You can move in new money to a new IFISA account and it will count towards this year's money.
Q. How will transfers out work?
A. When your loans mature the principle (plus any interest payments made in the interim) will be in the account held on your behalf by a custodian (in this case Reyker Securities). If you wish to exit your IFISA in part, or in full, you can draw down your money.
Q. Do I have to subscribe new money to this platform in order to create an IFISA account or can I just use it with money transferred in?
A. You can do either.
Q. Will accounts run off the same log in?
A. Your IFISA account will run off the same log in as your normal Crowdstacker account. When you log in you will be able to view all your investments, whether they are held in an ISA or otherwise.
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ilmoro
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Post by ilmoro on Apr 5, 2016 18:07:38 GMT
6 Does the account offer theses flexible ISA features: 6a. withdrawing and replacing of current year money without using more of the current year allowance for the replacement subscription. 6b. withdrawing and replacing of past year money without using current year allowance. 6c. when replacing past year money, continuing to allow this replacement if all current year money has been transferred elsewhere with an ISA transfer. 6d. if none of those flexible ISA features, please say which flexible ISA features are offered or none if none are offered. 6e. when both current and past year money are paid in and a transfer out of current year money is requested, please describe how the platform will determine whether all current year money is available to transfer. One potential issue here is that an investment may be purchased when only current year money has been subscribed and even though there is sufficient cash in the account to do the full subscribed amount transfer, the platform may conclude that the investment was purchased with current year money and has not been sold so the transfer request must be declined because all current year money cannot yet be transferred. The reason for this suggested revision is that most parts of the flexible ISA package are optional and these questions are designed to cover areas where I know that some places do or don't provide the feature or where I know of potentially difficult interactions like which investments were purchased with current or past year money. Question 6e is particularly likely to result in trouble for anyone trying to answer it. Isnt 6e covered by clause 6.80 in the Guidance notes. Withdrawls are deemed to be firstly to be current year subs then previous. Replacements are previous then current. Managers do not need to record if replacement subs relate to current or previous.
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james
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Post by james on Apr 5, 2016 18:11:41 GMT
6e. when both current and past year money are paid in and a transfer out of current year money is requested, please describe how the platform will determine whether all current year money is available to transfer. One potential issue here is that an investment may be purchased when only current year money has been subscribed and even though there is sufficient cash in the account to do the full subscribed amount transfer, the platform may conclude that the investment was purchased with current year money and has not been sold so the transfer request must be declined because all current year money cannot yet be transferred. The reason for this suggested revision is that most parts of the flexible ISA package are optional and these questions are designed to cover areas where I know that some places do or don't provide the feature or where I know of potentially difficult interactions like which investments were purchased with current or past year money. Question 6e is particularly likely to result in trouble for anyone trying to answer it. 6e I am having trouble to understand it in the first place. I need to go over it again and leave it to sink in. Subscribe 1k of new money and invest it in loan A. Transfer 1k from a previous year. What has to happen before you can transfer out the 1k of current year money to another ISA? Can the transferred in 1k be used as the current year money and loan A treated as if it's the previous year money that now owns it? Must the loan A be sold? Can it be virtually sold to the past year money to free up the current year money? Or in general, how fungibly does the platform regard the money that is on the platform? Isnt 6e covered by clause 6.80 in the Guidance notes. Withdrawls are deemed to be firstly to be current year subs then previous. Replacements are previous then current. Managers do not need to record if replacement subs relate to current or previous. No, It's more subtle than that: how does the platform determine which investments are owned by current or past year money? The Guidance Notes for ISA Managers have some guidance but it is not definitively prescriptive.
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ablender
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Post by ablender on Apr 5, 2016 18:22:51 GMT
6e I am having trouble to understand it in the first place. I need to go over it again and leave it to sink in. Subscribe 1k of new money and invest it in loan A. Transfer 1k from a previous year. What has to happen before you can transfer out the 1k of current year money to another ISA? Can the transferred in 1k be used as the current year money and loan A treated as if it's the previous year money that now owns it? Must the loan A be sold? Can it be virtually sold to the past year money to free up the current year money? Or in general, how fungibly does the platform regard the money that is on the platform? Isnt 6e covered by clause 6.80 in the Guidance notes. Withdrawls are deemed to be firstly to be current year subs then previous. Replacements are previous then current. Managers do not need to record if replacement subs relate to current or previous. No, It's more subtle than that: how does the platform determine which investments are owned by current or past year money? The Guidance Notes for ISA Managers have some guidance but it is not definitively prescriptive. : If I am understanding your argument correctly - - - - Since we will not be transferring the loans themselves but have to sell and then transfer the money, I understand that it does not matter which loan was bought with which money. If I compare it with the flexible ISA, will I have to return the exact same note (money) in order not to loose the tax status?
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james
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Post by james on Apr 5, 2016 20:33:17 GMT
That's the core of the question: do you have to sell loan A or not if you want to transfer the current year money? You have a loan worth 1k that you initially bought with current year money. You have 1k of past year cash in the account. Can you transfer 1k of current year money without selling loan A that it originally bought? See chapter 11 of the Guidance Notes, page 140 onwards for what they say and that will hopefully make it clear why I'm asking the question. 11.13 on in particular. |
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ablender
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Post by ablender on Apr 5, 2016 20:58:02 GMT
Another question:
Can we transfer out ISA money to any ISA manager or are we stuck to the paying in account?
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ablender
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Post by ablender on Apr 5, 2016 21:04:11 GMT
That's the core of the question: do you have to sell loan A or not if you want to transfer the current year money? You have a loan worth 1k that you initially bought with current year money. You have 1k of past year cash in the account. Can you transfer 1k of current year money without selling loan A that it originally bought? See chapter 11 of the Guidance Notes, page 140 onwards for what they say and that will hopefully make it clear why I'm asking the question. 11.13 on in particular. With stocks and shares ISA, can you actually transfer the shares? This is what I am understanding from what I am reading. I do not think that this is applicable to P2P. Anyone can put a 2p?
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ilmoro
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Post by ilmoro on Apr 6, 2016 0:18:20 GMT
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james
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Post by james on Apr 6, 2016 3:14:35 GMT
That's the core of the question: do you have to sell loan A or not if you want to transfer the current year money? You have a loan worth 1k that you initially bought with current year money. You have 1k of past year cash in the account. Can you transfer 1k of current year money without selling loan A that it originally bought? See chapter 11 of the Guidance Notes, page 140 onwards for what they say and that will hopefully make it clear why I'm asking the question. 11.13 on in particular. With stocks and shares ISA, can you actually transfer the shares? This is what I am understanding from what I am reading. I do not think that this is applicable to P2P. Anyone can put a 2p? Both a S&S ISA and a cash ISA allow the transfer of shares. A cash ISA can hold shares that were ineligible to hold in a S&S ISA due to the 5% rule that no longer applies, though I don't know of any cash ISA provider which allowed this. For P2P the money was originally identifiable as current year money used to buy loan A. Loan A is still held, so how much current year money can be transferred without selling loan A? Or will the platform do a virtual swap of loan A from the current to past year money to facilitate the transfer? Or allow an explicit swap?
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