UK peer-to-peer lending platform LandlordInvest is dealing with a possible wind-down amid investigations by the Monetary Conduct Authority (FCA).
In a put up on LinkedIn on the weekend, LandlordInvest managing accomplice Filip Karadaghi stated the regulator was “pushing us to wind down, for motive(s) unknown to us.”
He added that the agency would “do as a lot as attainable to wind down ourselves as will probably be way more useful than the regulator appointing directors.”
Karadaghi stated he might solely speculate on the explanations for the continuing regulatory intervention, saying the agency had been a “shining gentle within the UK’s P2P trade for a few years.”
Learn extra: Over half of LandlordInvest loans funded in underneath 5 minutes
Nonetheless, chatting with Various Credit score Investor at the moment, he stated the FCA had advised the agency it “want[ed] to grasp [its] enterprise mannequin.”
Karadaghi confirmed that the agency had not but determined to wind down however that the agency’s “notion is that the regulator needs for us to take action as a result of their overly aggressive strategy final couple weeks.”
He stated the FCA was “dedicating important sources” to its investigation of the P2P lender, and needed to ship in a crew of investigators that might outnumber LandlordInvest’s whole workforce.
Karadaghi added: “[It] makes little sense given the scale of the agency and in any other case spotless compliance observe report over almost eight years.”
Learn extra: LandlordInvest reveals greater than 50pc of B and C rated loans have been paid on time
He ended his LinkedIn put up on the weekend with a touch upon buying and selling situations within the UK, saying: “I hope that our instance serves as a warning for any EU residents seeking to arrange a enterprise within the UK.”
Business individuals commenting on Karadaghi’s LinkedIn put up expressed disappointment on the information. Amongst them, Breeze Capital’s Mark Harrison stated: “I’ve at all times felt that your proposition was sturdy and clear.”
Property finance dealer Phil Mabb stated: “Prime operator and one of many honourable companies within the sector. [Sad] information certainly.”
Yesterday Karadaghi revealed one other put up on LinkedIn asking that individuals involved in buying both the entire or a part of the agency contact him immediately.
The FCA declined to remark.
Learn extra: P2P lenders dismiss default issues