UK: Zopa obtains full FCA approval

Zopa has been granted full authorisation by the Financial Conduct Authority (FCA) after a rigorous approval process that lasted 18 months.

The new accreditation is expected to increase consumer confidence in the peer-to-peer lending sector and help push it into the mainstream, benefiting both Zopa and the peer-to-peer lending market.

Now, Zopa can also apply to the HM Revenue & Customs (HMRC) department to offer an Innovative Finance ISA (IFISA), which is a new type of ISA. It allows investors to lend to businesses through peer-to-peer wrapped into an Isa and hence, enables them to receive the tax benefits common to other types of ISA products.

Zopa is currently applying for a banking license that, once approved, will allow them to offer a wider range of spending, borrowing, savings and investment products. This process began in November last year and is expected to take between 15 and 24 months.

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