Funding Circle receives full FCA authorisation
We’re pleased to announce that Funding Circle has today received full authorisation from the UK regulator, the Financial Conduct Authority (FCA). As a founding member of the Peer-to-Peer Finance Association we have always actively campaigned for the industry to be regulated.
Today’s news comes as Funding Circle becomes the largest peer-to-peer or direct lending platform in the UK by cumulative amount lent, with investors having lent more than £2.3 billion to over 24,000 businesses, supporting the creation of an estimated 60,000 jobs in the process. With more than 60,000 investors now regularly lending through Funding Circle, we are on track to becoming a mainstream investment choice for investors up and down the country.
Managing supply and demand on the platform
Now that we have received authorisation, we are looking forward to being able to offer you industry-leading, tax-free returns with the Funding Circle ISA, subject to obtaining ISA manager status from HMRC. Since 2010, investors lending through Funding Circle have earned an average of 6.5% per year and £116 million of interest after fees and bad debt. Please remember that past performance is not a guarantee of future returns, and by lending to businesses your capital is at risk.
To continue to offer these returns it is important that we are able to continue to match your funds to creditworthy businesses looking for finance. Small business lending can be seasonal, with demand from borrowers changing throughout the year. Given we expect the Funding Circle ISA to be popular, we plan to launch it later this tax year to suit demand from both investors and borrowers. This will allow us to manage liquidity on the platform and help investors to earn attractive, stable returns.
We will provide you with a further update in due course.
If you have any questions on today’s announcement or on the Funding Circle ISA, please don’t hesitate to get in touch.
The Funding Circle team