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Peer-to-peer investments to be offered on adviser platforms

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Consumers will be able to invest in peer-to-peer (P2P) loans via leading wealth management platforms for the first time, following an agreement between P2P provider RateSetter and technology firm FNZ.

The tie-up will mean clients of FNZ-powered wealth management platforms  – including AXA, Friends Life, HSBC, UBS and Zurich – will be able to invest in four RateSetter P2P products.

The move, which is set to be introduced early next year, will open up the P2P lending space to millions of new investors.

P2P, also known as crowd-lending, is a relatively new financial product that matches lenders with individual borrowers. Money can be borrowed at lower rates, and savers can secure better rates of return than those offered by mainstream banks.

In July’s Emergency Budget, Chancellor George Osborne confirmed that a new type of ISA will be brought in next April, allowing peer-to-peer investors to earn interest tax -free.

Ceri Williams, business development manager at RateSetter, said: “Peer-to-peer lending continues to grow in popularity – our current investors include everyone from retail consumers who might lend a few thousand pounds, to the Government, which has lent £10m using our platform via the British Business Bank vehicle. This agreement will allow some of the biggest investment platforms in the UK to offer peer-to-peer investments to their adviser client base – the end user will benefit from having even more access to attractive interest rates on currently underperforming deposits.”

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