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

FCA launches consultation on adapting to a 'changing pensions market'

FCA launches consultation on adapting to a 'changing pensions market'

Outlines regime for digital pension planning tool

Holly Roach
clock 11 December 2025 • 3 min read
Lack of focus delaying pension transfers, Origo CEO warns

Lack of focus delaying pension transfers, Origo CEO warns

Advisers share months-long delays as PensionBee’s petition calls for ten-day transfer guarantee

Sahar Nazir
clock 11 December 2025 • 6 min read
Pension IHT: A minor win for executors, a missed opportunity for HMRC

Pension IHT: A minor win for executors, a missed opportunity for HMRC

'It's a great pity HMRC couldn't have been a bit braver and taken the sensible approach'

Rachel Vahey
clock 09 December 2025 • 3 min read