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Peer2Peer Finance News | July 19, 2019

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Lendy administrator still unable to authorise client money withdrawals

Lendy administrator still unable to authorise client money withdrawals
Suzie Neuwirth

LENDY’S administrator has said it is still not able to authorise the withdrawal of funds from client accounts but is “conscious this is an issue for investors”.

RSM said in a letter to investors on Monday that it needed to complete a number of regulatory tasks before it could authorise these withdrawals.

“We are conscious this is an issue for investors and we are focusing on addressing this,” the firm added. “Further updates will be provided on this matter within the next 14 days.”

However, RSM said that a separate category of funds relating to loan repayments should be repaid soon.

“Another, separate, category of funds held within the client account relate to loan repayments, received prior to the appointment of the administrators,” said RSM. “We are in the process of reviewing these and we anticipate allocating these to individual client accounts shortly.”

Peer-to-peer property lender Lendy went into administration in May, after months of speculation about rising defaults.

Un-picking the company’s loanbook has proved a complex task and RSM warned last month that recovering funds from the provision fund would be tricky.

RSM said on Monday that it will be issuing a report this month to creditors, which will outline its strategy for the administration. This will be shared with investors.

“These reports will include a comprehensive review of all key matters in each administration to date,” RSM added. “If there are any additional key updates to the Investors in the meantime, we will send these by email in the usual way.”

The administrator also confirmed that the Lendy Wealth product, which was launched last year to attract high-net-worth investors, will be managed under the same administrative process as the typical investment product.

Former City minister Lord Myners has called for an independent review into the Financial Conduct Authority’s supervision of Lendy, while an action group has been set up by Lendy investors, to ensure they are treated fairly in the administration process.