IFISA “still a viable product”

The Innovative Finance ISA (IFISA) is “still a viable product” and can offer higher returns than traditional forms of investments, Simple Crowdfunding chief Atuksha Poonwassie (pictured) has said.

The UK Crowdfunding Association director heralded the peer-to-peer lending tax wrapper and highlighted the fact that investors can enjoy tax-free earnings while having a social impact.

“If people can fund an investment opportunity that does have some sort of asset backing as well and helps bring homes to market, it is a very viable option,” she said.

Read more: Autumn Statement: Jeremy Hunt plans ISA overhaul

“The feedback we are getting is that people want to use their IFISA allocations to fund projects. Our average investment on the ISA side per project is currently £15,000 and transfers are often higher.”

Investment into IFISAs rose in the last tax year to £144m but is still substantially down from the £995m put into the product in the 2019/20 tax year.

Some have suggested that stricter investor marketing restrictions have led to less interest in IFISAs, which are a retail-friendly product.

Read more: Exclusive: Largest IFISA providers revealed

However, Poonwassie underlined her platform’s commitment to retail investors.

“Retail investors are part of the charm and benefit of being in the crowd space,” she said.