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.

Enjoy lending,

The Funding Circle team

Jack Pritchett

Senior Communications Manager

 

10 thoughts on “Funding Circle receives full FCA authorisation

    • Hi John, along with credit assessment and loan servicing, one of the most critical roles a direct lending platform like Funding Circle provides is liquidity management. If the balance between supply and demand moves too far in one direction it can impact how long it takes for your money to be lent out, and in turn, the return you receive.

      As 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. We will provide you with further details closer to launch. Thanks.

  1. I`ve had to join Lending Circle as I wanted an ISA. I so wish Funding Circle had managed to get ISA status..LW are so slow to match.hope FC aren`t when they , `do` ISAs.

      • Ha..got them muddled. I joined Funding Circle quite a while ago. It`s easy to use, add money to and reinvest. I wanted an ISA this year and, as they didn`t offer an ISA, I had to start one with Lending Works. It`s a nightmare in comparison ..with your money just sitting there while it joins a queue to be lent out! I will be opening an ISA with Funding Circle asap..so wish they`d get the go ahead!

        • Ahhh I thought that was what you meant – but why Lending Works – I was also fed up with FC and felt let down that they didn’t see what happened to them coming. I joined up to Crowd2fund and it seems to work perfectly – many loans are coming on and they fill quickly and you start earning interest early – plus they have a very good secondary market – you should try it. i’m off to have a look at LW!

      • I get the impression that FC are a bit blasé about ISA, hence the guff about supply/demand. I’m quite disappointed because last year they suggested that as soon as they gain approval it would be all systems go. I’m very annoyed with what I’ve read today. Looks like my supply will have to go elsewhere.

  2. I also heard from Zopa two weeks ago that they now have full FCA authorisation, and today they announced that they will be launching their IFISA on 15 June. I would like to hold out for the Funding Circle product, but I do hope it’s not going to be too much longer.

    • Hi there, we will let you know more about how the Funding Circle ISA will work closer to launch. Thanks.

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