P2P or not P2P: Do SIPPs and peer-to-peer lending mix?

P2P or not P2P: Do SIPPs and peer-to-peer lending mix?

clock

P2P lending might have captured investors' attention but utilising it in a SIPP brings a unique set of challenges, writes Andy Leggett

Peer-to-peer (P2P) lending has captured many people's imagination for its inventiveness and "grass roots" appeal. Disappointingly for them, there are many and varied challenges to using a self-invested personal pension (SIPP) for it. The Financial Conduct Authority's (FCA) thematic reviews of SIPP operators make demands on SIPP operators in terms of due diligence on non-standard investments, systems and controls and suitability. Combined, these make P2P lending difficult, costly and high risk to administer in a SIPP - to the point, in my view, where investors are likely to look instea...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Sipps: How clients can avoid common retirement planning mistakes

Sipps: How clients can avoid common retirement planning mistakes

'Retirement planning stands as a cornerstone of long-term financial well-being'

James Floyd
clock 28 April 2025 • 4 min read
Origo completes pensions dashboard connection

Origo completes pensions dashboard connection

Completed connection ahead of this week’s first deadline

Holly Roach
clock 28 April 2025 • 2 min read
HMRC repays £44m in overpaid pensions tax during Q1 2025

HMRC repays £44m in overpaid pensions tax during Q1 2025

More than £1.4bn in overpaid pensions tax recouped since 2015

Martin Richmond
clock 28 April 2025 • 3 min read