The FundingSecure Action Group (FAG) has called for a public inquiry into the Financial Conduct Authority’s (FCA) supervision of collapsed peer-to-peer lending platforms Lendy and FundingSecure.
P2P pawnbroking platform FundingSecure closed in October 2019 and CG&Co was appointed as an administrator. When it collapsed, the platform had about £80m of the £175m of loans it had arranged outstanding.
P2P property lending platform Lendy entered into administration in May 2019, leaving more than £160m outstanding on the loanbook, with at least £90m of these in default.
According to The Times, the FAG has accused the City regulator of “apparently atrocious lack of supervision of the industry” and said a public inquiry is needed into the “purported lack of supervision demonstrated by the FCA in regards to both” Lendy and FundingSecure.
In late 2020, Dame Elizabeth Gloster published her report of the independent investigation into the FCA’s regulation of London Capital & Finance, and despite questions about P2P fraud in Parliament, there has not been an independent investigation into the FCA’s oversight of P2P platforms.
Last month, FCA chief Nikhil Rathi told MPs that the investigations into Collateral, including a potential hack into the regulator’s register, are very close to a conclusion and hopes to provide another update by September.
In May, FundingSecure’s administrator CG&Co halted payments to investors, due to a claim from an unnamed creditor and the investors are facing yet another court hearing regarding the priority order for repayments.
The FCA declined to comment.