JustUs increases IFISA threshold to £10k
JustUs has increased the minimum investment threshold on its Innovative Finance ISA (IFISA) from £100 to £10,000 ahead of the 2023 ISA season.
The peer-to-peer property lending platform made the change at the end of January in response to tightening regulation which has increased the cost of onboarding new lenders.
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Lee Birkett (pictured), chief executive and co-founder of JustUs, told Peer2Peer Finance News that the platform has made the decision to focus on family offices, pension funds and high-net-worth individuals.
“The new financial promotion disclaimers which came out at the end of January, basically put property-backed secured lending in the same high-risk categorisation as super-high-risk equity crowdfunding, which is disproportionate,” Birkett said.
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“It’s not worth the onboarding and ongoing monitoring of each lender unless they’ve got £10,000 invested, it’s such a shame.
“We will still work with retail investors who are investing £10,000 and above but we are really just focussing on family offices, pensions and high-net-worth individuals now.”
Last month, JustUs raised its borrower and investor rates by one per cent and 0.5 per cent, respectively. At the time, Birkett said that “the outlook for JustUs, our borrowers and investors is one of cautious optimism.”