FundingSecure goes into administration
FUNDINGSECURE, the peer-to-peer pawnbroker and property lender, has gone into administration.
The Financial Conduct Authority (FCA) announced the news on Wednesday and said that appointed administrator CG Recovery will be contacting all investors “in due course”.
“The administrators, CG Recovery Ltd, are now responsible for the business of Funding Secure Ltd,” the FCA said. “Among other things this means that they will seek to operate the P2P platform and credit investors with return of capital and interest as per the terms you have signed up to.”
FundingSecure’s current loanbook stands at £80m, the administrators said. The accumulated loanbook represents approximately 486 loans from around 3,500 investors.
FundingSecure confirmed on its website that it had gone into administration, following a resolution of the board of the directors.
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The administrators said they will only be able to respond to urgent queries. However, key updates on loans will be ongoing and accessible on the investor platform.
They said they will continue to update investors and creditors as additional information becomes available.
FundingSecure underwent a management and ownership restructure last year and moved to reassure investors that it had improved its processes, amid concerns of mounting defaults in its loanbook.
Creditors can contact the administration team on fundingsecure@cg-recovery.com and check for updates at www.cg-recovery.com/fundingsecure.
FundingSecure has been contacted for further comment.
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The Buckinghamshire-based firm is the latest P2P lender to collapse into administration, following Lendy earlier this year and Collateral last year. Like Lendy, FundingSecure was fully authorised by the FCA.
The City watchdog has been under scrutiny over its regulation of investment firms prior to their collapse. As Peer2Peer Finance News reported earlier this month, the regulator visited a number of P2P property platforms over the summer to discuss risk management, as part of its increased scrutiny of the sector.
“The FCA is working closely with FundingSecure Ltd and the administrators,” said an FCA spokesperson. “FundingSecure continues to be authorised and regulated by the FCA and is required to treat its customers fairly. The administrator will contact customers as soon as possible.”
