Zopa hits out at claim it owes adviser £4.2m
Zopa is embroiled in a legal dispute with an advisory firm, which claims it is owed £4.2m for introducing the former peer-to-peer lender to an equity investor.
Kinled Investments reportedly argues that it is owed £4.2m in commission after introducing Zopa to US investment firm IAG Silverstripe Partners, which later invested £140m in Zopa.
According to The Mail on Sunday, court papers reveal that Zopa is arguing that Kinled broke financial rules while carrying out work for the P2P platform-turned-bank, and is demanding repayment of £345,000.
Zopa’s lawyers have reportedly described the agreement with Kinled as “unlawful and unenforceable”, meaning the adviser is not entitled to commission. Kinled denies any criminality.
The Mail on Sunday cited documents that showed that in 2018, Zopa chief Jaidev Janardana met Rupert Novis, director at Kinled, when the P2P platform was searching for investment for a retail banking licence.
However, Zopa reportedly said that Silverstripe’s decision to invest was not because of the relationship with the adviser
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A trial will take place next month.
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Zopa and the City regulator have both been contacted for comment.
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Zopa gained its full banking licence in 2020 and exited the P2P space at the start of this year.