Invest and Fund backs IFISA ahead of Autumn Statement

Invest and Fund has backed calls to retain the Innovative Finance ISA (IFISA) amid rumours that chancellor could axe the product in the upcoming Autumn Statement.

The property lender noted that more choice is needed in the ISA market, and suggested that it may be appropriate to introduce different classes of ISA which are aimed at supporting British businesses.

“Having an ISA for UK-specific investments being considered an option fits perfectly into the growth narrative,” said Invest and Fund in a blog post.

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“It would be radical because it’s taking a product designed to benefit the individual and turning it into the essence of a corporate bond offering. However, we would argue, can’t it do both?

“We can only see the positives in the IFISA product that already captures the critical components of the above and could quickly be developed to a much larger market share as a component of capital raising for British companies.

“We do stand fully behind the substantial value of the IFISA, both for investors and for British industry.”

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Invest and Fund added that IFISA investments already help fund UK businesses and enhance innovation on a grassroots level, with goals “wholly aligned with the government’s objectives”.

The platform is not predicting an end to the IFISA when the chancellor reveals his statement on 22 November. However, Invest and Fund did predict that changes could be made to the Lifetime ISA, such as increasing the property price cap and removing the withdrawal penalties.

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