The FCA has set out its thinking on how new Innovative Finance Isas should operate including rules on advising on peer-to-peer investments.
In November 2015 the regulator published a discussion paper on how peer-to-peer lending could be incorporated into Isas and whether commission would be banned.
In a consultation published today, the regulator proposes aligning P2P agreements with other retail investments that ban the payment or receipt of commission. A ban would also cover payments to platforms, including those run by Sipp firms.
The Innovative Finance Isa launches in April 2016 and advising on the products will become a regulated activity. However, independent advisers will not be required to consider the products as part of a recommendation of retail investments.
The consultation, which closes on 15 February, also covers the tax consequences if agreements are not repaid or if an investor wants to exit, the process of switching Isa managers and access to the FOS and FSCS.
Final rules will be published in March 2016.