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

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

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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...

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