The government has kicked off its consultation on allowing P2P loans to be held within ISAs, and making advice on them a regulated activity. So what do advisers think about this relatively new asset class? Laura Miller finds out...
Peer-to-peer (P2P) lending, in a nutshell, is individuals lending their money to other individuals or businesses without using a bank as a middle man. Since the 2008 financial crisis, banks have been forced to hold more capital and reduce risk, leading them to lend less often and driving borrowers to seek out alternatives like P2P loans. Business is booming - UK P2P lenders lent more than £900m of new money in the first three quarters of 2014, according to the Peer2Peer Finance Association, up from £500m in the first half of the year. This growth has caught the eye of the governmen...
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