Pensions are an integral element of planning for the future, ensuring that you have the correct amount of funds to maintain the desired quality of life is hugely important to individuals. SIPPs and other routes of pension schemes allow individuals to afford life after their careers. The traditional SIPP market has stemmed from SME owners placing their pension funds into companies as a key element of the financing plan. Further to this, a SIPP can obtain a mortgage to aid the process by which property is purchased. Recently however, this has been an increased challenge for SME owners as traditional bank loans are difficult to gain.
The Financial Conduct Authority (FCA) ensure that SIPP operators perform a large amount of due diligence on non-standard investments, systems and controls and suitability. Combined, these elements make Peer-to-Peer lending through SIPP operators tricky as the process becomes costly and high risk to the administrator. As the Peer-to-Peer is a relatively new industry, people are naturally hesitant to lend through platforms. The process by which SIPPs work in conjunction with P2P is very complicated, however not impossible by any means.
SIPPs tend to be at the forefront of innovation and it seems only right that they should enter the Peer-to-Peer space further. Wellesley & Co. accept applications through SIPPs, if you wish to apply please put us in touch with you Pension Trustees and we will handle the necessary steps. Please note that this process is subject to the specific Pension Trustee permitting Peer-to-Peer lending within your pension scheme.