Investing in Innovative Finance ISAs

We have seen evidence that Innovative Finance ISAs (IFISAs) are being promoted alongside cash ISAs.

Investments held in IFISAs are generally high-risk with the money ultimately being invested in products like mini-bonds or peer-2-peer investments. 

These types of investments may not be protected by the Financial Service Compensation Scheme so customers may lose the money invested or find it hard to get back.

Anyone considering investing in an IFISA should carefully consider where their money is being invested before purchasing an IFISA.