We are an FCA-regulated company with a commitment to transparency. Here we provide a breakdown of how our Safeguarded investments have performed.

As of 30 November 2020, the Safeguard Fund was wound down with the remaining balance paid to investors. Investors affected have received email communications about the payment and how this impacts them.

From 2013 to 2017, Zopa Classic and Zopa Access came with coverage from a provision fund called Safeguard.

Safeguard was a tax-efficient way for investors to offset any losses from defaults against interest on their loans. It worked by buying up defaulted loans and paying back the investor.

In 2015, HMRC made some changes. New guidance meant investors could make a claim for tax relief on peer-to-peer losses directly. With the primary reason for the fund now removed, we took the decision that from 1 December 2017, we would retire all products with Safeguard coverage.

Annual investment returns

Here’s a snapshot of how Zopa investments with Safeguard coverage performed since 2013. These are what investment returns looked like after fees and losses.

Zopa Safeguarded Products

Graph showing annual investor returns for Zopa’s Safeguarded investments between 2013 – 2020

No new Safeguard loans originated after 2017

Source: Zopa’s loan book.

1st January 2013 to 31st December 2020

The light blue section represents the final pay out investors received in November 2020 when the Safeguard fund was wound down. The one-off payment covered a portion of any future losses on remaining Safeguarded loans.

Investment return is defined as the weighted average interest rate across loans that were active in that year (net of fees, by each loan's balance) minus the annualised loss rate on these loans after taking into account any payments from Safeguard to cover these losses.

Annual net losses

Without the benefit of Safeguard coverage, this is what net losses on those loans would have looked like since 2013. The chart compares expected net losses to actual net losses in a given year. By net losses we mean the amount lost to defaults, after taking into account any recoveries made by our Collections team.

Zopa Safeguarded Products

Graph showing what annual net losses on those loans would look like without the benefit of Safeguard coverage between 2013 – 2020
Net losses
Graph expected line

Expected net losses

No new Safeguard loans originated after 2017

Source: Zopa’s loan book.

1st January 2013 to 31st December 2020

We retired products with Safeguard coverage on 1 December 2017

Safeguard was funded based on expected lifetime default rates at loan origination for all A*–C safeguarded loans. In addition to these expectations we added an additional 10% buffer.

Total Safeguard purchases to date

£49.2 million

Total in Safeguard fund today


Safeguard loans disbursed

£1,158.7 million

Safeguard loans outstanding

£12.5 million

Last updated 5 May 2021

All remaining funds from Safeguard were distributed among investors in November 2020. The remaining portfolio of loans will perform in the same way as Core and Plus, as future defaults will not be covered by the fund.

Important information

Remember past performance is not a reliable indicator of future results. And forecasts are not a reliable indicator of future performance.

Read our risk statement for more information. Or take a look at Zopa’s public loan book as a download showing historical performance.

The Safeguard fund we offer does not give you a right to a payment so you may not receive a pay-out even if you suffer loss. The fund has absolute discretion as to the amount that may be paid, including making no payment at all. Therefore, investors should not rely on possible pay-outs from the Safeguard fund when considering whether or how much to invest.

Please be aware that we retired Safeguard products on 1 December 2017. Any Zopa investments taken up after that point do not come with Safeguard coverage.

Find out more about our Safeguard policy.