BDO has been named as the new administrator of collapsed peer-to-peer lender Collateral after a High Court approved the City regulator’s request to change practitioner.
The Financial Conduct Authority (FCA) issued proceedings in the High Court last month as it said that Collateral had not sought its approval before appointing Wigan-based Refresh Recovery in February.
It said it had intervened “to ensure investors are protected as the law requires”.
The appointment of BDO was approved at a hearing in Manchester at the end of last month.
“The BDO administrators have the sole and exclusive power to control and manage the assets, business and affairs of the Collateral companies,” a note from BDO to Collateral investors said.
“The BDO administrators are under the overall control of the High Court and were appointed following an application to the high court by the FCA, the UK’s financial services regulator.
“All contact with the Collateral companies must now be made through the BDO administrators.”
Manchester-based Collateral closed down at the end of February after it emerged that it had been operating without the correct regulatory permissions.
BDO said it would carry out an immediate review of and investigation into the affairs of Collateral and will be liaising with investors.
BDO has set up a dedicated Collateral administration web page with a frequently asked questions section (FAQ).
The FAQ section noted that the administrators will explore the feasibility and appropriateness of a loanbook sale but its initial focus was to recover and understand the nature of the book.
BDO also said that it is currently unable to comment on recovery of investor funds.