Online lenders in the UK have been salivating at the possibility of tapping the Individual Savings Account (ISA) market on April 6th. However the FCA sent out a letter to 31 lenders this week telling them they may have to wait a little longer due to regulatory tweaks.
The change in the law will let online lenders stick their loans into a tax-efficient ISA wrapper, but there’s a snag — the lenders have to be fully authorised by the FCA before they can start selling their P2P/ISA wares. (Although that hasn’t stopped the likes of Ratesetter and Zopa releasing details of their ISA product in advance. Coming soon, etc). Today, the FCA sent out a letter to 31 lenders telling them they may have to wait a little longer due to regulatory tweaks that have made them “unable to make authorisation decisions,” according to a copy seen by FT Alphaville.