RateSetter aims to attract financial advisers with new product

RATESETTER is targeting the financial adviser market with a new dedicated product.

The peer-to-peer lender, which has traditionally focused on retail investors, said on Tuesday that it will launch a new portal for financial advisers in February 2020.

Mario Lupori (pictured), chief investments officer for RateSetter, said the platform has always planned to open up to the adviser community as a natural next step to making the product more available.

Read more: More firms withdrawing P2P regulatory applications

“P2P is a new asset class and represents an opportunity for investors to access returns previously gobbled up by the banks,” he said.

“RateSetter is not a savings account but it is a low-risk investment.

“Our research with advisers tells us that there is demand for a product that pays more than cash without the volatility of shares.

“Our target is that it becomes normal for an investor with a diversified investment portfolio to include an allocation to an investment product like ours.

“We hope advisers will find our portal helpful for their clients to access P2P.”

RateSetter said that more than 80,000 self-directed investors currently have accounts and the platform has always planned to open up to the adviser community as a natural next step to making the product more available.

Financial advisers have historically been cagey about P2P lending due to its relative nascence and the lack of Financial Services Compensation Scheme protection.

Some P2P platforms such as Octopus Choice have managed to build relationships and there are predictions that the tougher Financial Conduct Authority regulations for the sector will make it a more attractive asset class.