LENDY investors will need to wait until October at the earliest to recoup any of their funds, the administrator of the collapsed peer-to-peer lender has said.
RSM said that before it can release any money to investors – which includes outstanding withdrawal of available balances, funds from the sale of security properties and the recoveries process – it must ensure compliance with anti-money laundering (AML) legislation.
“An initial review of the company’s existing AML and client take-on procedures has noted deficiencies that have required to be addressed,” RSM said. “This is ongoing, with legal advice being obtained from Fieldfisher.”
The administrator said that it is working with a number of third-party providers to address the matter and anticipates that the process will be completed by 1 October.
It also said that any investors that are suffering significant hardship as a result of this process should contact the team at Lendy.Restructuring@rsmuk.com, as they may be able to take steps to accelerate this process in individual circumstances.
Read more: Lendy collapse: Who’s to blame?
Lendy fell into administration in May, following months of speculation about mounting arrears and a legal dispute with a defaulted borrower.
The Financial Conduct Authority had slapped an asset restriction on Lendy earlier in the year, preventing it from releasing client money without the regulator’s written consent.
In its letter updating investors on Friday, RSM also noted that it had received a number of requests relating to whether investors are creditors and that Shoosmiths have been instructed to review the contracted terms.
RSM said there is a lack of clarity within Lendy’s terms and conditions on the matter but once a final decision has been made, it will update all investors.