A new Peer to Peer lending and crowdfunding platform review service has been launched by Sipp Investment Platform.
The firm said it has created the service after growing demand from Sipp and SASS operators and institutional investors.
The company said it has been tailored to requirements of Sipp and SASS operators and institutional investors.
Changes to the Lifetime Allowance due to begin next year and a reduction in pension tax relief for higher earners announced in the latest Budget are likely to increase demand for these reviews, the firm believes.

{desktop}{/desktop}{mobile}{/mobile}


Alan Sheehan, technical manager at Sipp Investment Platform, said: “With the Chancellor’s announcement of a tapered reduction in pension tax relief for higher earners, pension investors will be looking for ways to do more with less. “The higher interest rates that P2P platforms can offer plus the potential for high growth from Crowdfunding Platforms can be attractive, but there are so many in this crowded marketplace that Sipp and SSAS Operators and institutional investors may struggle to distinguish the right option for them.
“Our platform review service not only helps them to make a more informed choice, but also provides the audit trail they need to meet their compliance obligations.”

To help Sipp and SSAS operators decide if a P2P platform meets their particular criteria, the analysis has been divided into seven key areas:

1. Loan specifics: Analysis of the loans and loan parts, their returns and fees
2. Liquidity: Analysis of the conditions attached to the loans including early repayment, redemption, cancellation and transfer plus a summary of the secondary market
3. Security: Examining the security attached to the loans plus the platform operator’s assessment procedures on potential borrowers, default, late payment and provision fund analysis
4. Parties: Review of the platform operator and any ongoing counterparties, including their provenance, experience and regulatory record
5. Continuity: Review of the platform’s business continuity and disaster recovery plan
6. Compliance: Review of the platform operator’s regulatory compliance, including high level controls, CASS compliance, AML, capital adequacy, client reporting, promotional material and complaints procedures
7. Taxation: Research into whether investing via a member-directed pension scheme may lead to tax charges through unauthorised payments, taxable property or otherwise