UK property finance firm Lendy has collapsed with Damian Webb, Phillip Sykes and Mark Wilson of RSM appointed as administrators following a court order on Friday (24th May 2019) afternoon.
The administrators are working closely with the Financial Conduct Authority (FCA) who consented to their appointment over the company.
The lender was under investigation by the FCA, and it was revealed the company had rising default levels toward the end of last year. Lendy allowed retail investors to lend to property developers.
The company was placed on an FCA watchlist in January, less than a year after receiving its licence. There were concerns about the firm’s ability to meet the standards required of regulated firms, and the regulator tried to help it avoid a collapse. The failure to do so means tens of millions of pounds of retail investors money could be lost.
Lendy has in excess of £160m in outstanding loans, and more than £90m is in default.
The collapse represents one of the biggest failures in Europe’s peer-to-peer lending sector, which is undergoing a crackdown on marketing rules.