SIPPs

But P2P IS regulated, which is why platforms need approval. Or did you mean 'unapproved' rather than 'unregulated'?

Unfortuntely I have some bad news for you, Greyfrairs the Evolution SIPP arranger is no longer taking on new business as of the beginning of this month which I found out recently and was gutted

I went through the same process and to date have found no alternatives. Please if either I am wrong about Evo being closed (and I don't think I am) or you find an alternative SIPP please let me know. On the plus side Brian at SIPP club was very helpful and apologetic, and says SIPP Club are actively looking for a new arranger but that it will take some time.

I set-up a SIPP with Greyfrairs Asset Management  a couple of years ago which I use to invest on SS and RebS.  I understand that Greyfrairs no longer accepts new business, but there are a number of other providers.  Ratesetter name a number of SIPP providers whom they work with (Concept Group, London & Colonial, Westerby & Whitehall - www.ratesetter.com/invest/sipp) all of whom I'm sure will have similar relationships with other platforms. 

In respect of the operation of the SIPP, it is very straightforward.  In the case of Greyfrairs, they set-up a SIPP bank account and opened accounts with SS and RebS on my request.  Except for the requirement that the P2P account is linked to my SIPP bank account, I operate each P2P account in the same way as my non-SIPP accounts and have full control of these.  The only time I need to speak with Greyfrairs is when I direct them to move funds out of my SIPP bank account to a platform.  I imagine other SIPPs would operate in a similar way.

When I set-up my SIPP, Greyfrairs were the cheapest provider charging a flat annual fee of £1,250.  They allow you hold most other eligible investments such as commercial property etc, but other charges may apply depending on the amount of time they require to administer the asset - I solely use mine for P2P investment and have other SIPPs for equity and debt investments.  The fee level is such that it only makes sense to set-up a SIPP for P2P if you are looking to invest £75k+ in the asset class.  Depending on the provider, they may only take you on if you are a high net worth individual (from memory £100k+ income and/or £250k+ in liquid assets). I believe this is driven by the much higher regulatory burden/cost of dealing with retail customers. I recall having to provide realms of documentation to evidence my wealth which was a real pita at the time.

So in summary I would fully recommend setting up a SIPP to invest in P2P if you are already comfortable with the asset class and providing you can find a SIPP operator at reasonable cost that is commensurate with the amounts you are looking to invest.  The day-to-day administration of you platform accounts is no different than a normal account and apart form the usual form filling and paperwork to initially set-up the SIPP, subsequent administration is minimal/zero.  

Just opened the letter - bummer!  Does anyone else have experience using any other SIPP administrator that can handle P2P investments?

I have been in contact with SIPPClub whom originally introduced me to Greyfrairs a couple of years ago.  Apparently they only found out from SIPPClub members today that they were planning to wound down existing SIPP business.  Apparently all SIPP operators they have previously work have stopped taking introductions from them or direct approaches from clients following a recent FCA alert aimed at SIPP operators and IFAs - essentially the FCA believe introductions should be made on an advised basis based on your individual circumstances (https://www.fca.org.uk/news/news-stories/investment-advisers%E2%80%99-and-authorised-firms%E2%80%99-responsibilities-when-accepting).    SIPPclub also mentioned that Greyfrairs has recently got in trouble with the FCA in another part of their business which may have led them to wind down the Evolution SIPP citywire.co.uk/new-model-adviser/news/why-did-the-fca-ask-dfm-greyfriars-to-stop-taking-in-new-money/a964716

SIPPclub (who are not a IFA) do not have any solution yet although they have suggested a SSAS (an employer version of SIPPs) for those that have own personal trading business.  It seems that an introduction by an IFA to a SIPP operator will be required as a minimum going forward.  If anyone has any luck with finding a SIPP operator that takes on clients directly or a inexpensive IFA that performs such introductions, please report back.  

Whilst I understand the concerns the FCA has about non-advised clients, I firmly believe that people can determine for themselves on the suitability without having another layer of cost in the form of a IFA being imposed on them.  After all, I didn't need an IFA to open up non-SIPP P2P accounts, or maybe this the thin end of the wedge..........

Great, and the only clean way out of this, if there is another SIPP administrator who'll do P2P AND the same platforms you've already got money on (ReBs, FK and AssetZ in my case). But if not, any thoughts on what to do immediately ? Depends what bullet 4 in the letter really means ? If only cash movements out of P2P platform restricted (which is what is suggested by what they say about frequent movement of monies which can be both time-consuming and costly to administer), maybe that's manageable provided you've got your money on the platforms you want before end December ? But if it restricts re-investment within the P2P platform, then it'll make the repayment loan platforms - at least ReBs and FK - pretty much unusable. Could Greyfriars justify that as being in acccordance with EvolutionSipp's service standards though ? Pretty much a horrorshow for me if that is it - leaves me stuck with Greyfriars' fees but without much ability to earn the income to pay them unless some other SIPP administrator will take the whole thing over.