Less than one in five (18%) of financial advisers would invest, or already have invested, their own money into peer-to-peer (P2P) lending schemes, according to Yorkshire Building Society.

Advisers are concerned about consumers’ low levels of understanding of the potential risks of P2P, which is not covered by the Financial Services Compensation Scheme and can mean savers lose capital as well as interest while also facing restrictions on withdrawing money.

More than four out of five (82%) of advisers surveyed believe customers do not understand P2P lending rules.

The Yorkshire’s study among investment specialist advisers found just 4% have invested in P2P while another 14% would consider investing their own money.

Last week, Government confirmed it plans to introduce from next April a third type of ISA, the Innovative Finance ISA, allowing for up to £15,240 tax-free investment in the P2P sector.

Advisers are braced for increased interest from clients about investing in P2P once it is covered by the trusted ISA regime and believe the new ISA will provide further momentum for the growth in the sector.

Nearly half (45%) believe interest in P2P will grow as new savings rules come into effect and 20% have already seen increases in inquiries from clients about investing in P2P over the past 12 months.