P2P Lending 'Less Risky' For Income Seekers


NicolaNewsnight11.11.15

We are delighted to welcome a new player on the alternative-finance media scene. A warm hello to P2P Finance News.

Here's a recent interview given by Money&Co.'s CEO, Nicola Horlick, to editor and founder Suzie Neuwirth: "CITY veteran Nicola Horlick has said that, despite 33 years investing in the stock market as one of the UK's top fund managers, she thinks peer-to-peer (P2P) is a 'less risky' way to boost your income.

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"Horlick is founder and chief executive of Money & Co, a P2P lending firm that focuses on business loans and which is currently awaiting Financial Conduct Authority approval to offer an Innovative Finance ISA (IFISA). She argues that as Money & Co's loans are secured against a company's assets, investors have more protection than they would if betting on stocks and shares.

"'If you're an equity investor, whether it's a listed company or a private company, you are the last person to get paid if something goes wrong,' she told Peer-to-Peer Finance News.

"'So this is vastly safer than actually investing in equities. It's not safer than investing in government gilts and it's not safer than leaving your money in the bank, as the bank is too big to fail and the government will bail it out.

"'But you're getting so little in terms of return if you leave your money in the bank, that actually the difference in yield is so big that it's worth taking that risk.'

"Horlick predicts that the IFISA, which puts a tax-free wrapper around P2P investments, will give the industry "a much wider appeal". Like some of the largest P2P platforms in the country, Money & Co is in the dark as to when exactly the FCA will approve its application, although she thinks it is 'very unlikely' she will be able to offer the product before January."

"'So we're a bit stuck [on the IFISAs] and it's very irritating,' she said. 'The Treasury wanted to push it ahead really fast and then the FCA got involved and it all slowed up, so it was a bit annoying. But you know, we are talking about selling things to members of the public so it's got to be properly regulated and properly thought through.'"

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CityA.M. follows the story... and look out for Nicola on tonight's edition of Newsnight.

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Find out more on how to lend and borrow by visiting our Knowledge Hub.



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Disclaimer: Money&Co.™ is the trading name of Denmark Square Limited, Company Number 08561817, registered in England & Wales, authorised and regulated by the Financial Conduct Authority (FCA). The company is identified on the Financial Services Register under Reference Number 727325. The registered office is 58 Glentham Road, Barnes, London, SW13 9JJ where the register of Directors may be inspected. Denmark Square Limited (ISA manager reference number Z1932) manages the Money&Co. Innovative Finance ISA.