FCA looks into Lendy after its shutdown

Lendy has been handed over to the FCA

Property peer-to-peer lender Lendy has collapsed and is under investigation by the Financial Conduct Authority (FCA).

The Portsmouth-based platform, which allows savers to lend to property developers, was taken out of the hands of its directors following a court order.

The business, launched in 2012, is being handled by joint administrators Damian Webb, Phillip Sykes and Mark Wilson of RSM.

Lendy, which sponsors the Cowes Week sailing regatta, has crashed with outstanding loans of more than £160 million, and more than £90 million is in default, according to City A.M.. The business announced it had more than 21,500 investors last July.

An update from RSM on the platform’s website confirmed: “The administrators are working closely with the FCA who consented to their appointment”.

It added that “the information we have is limited” and asked creditors to “continue to consult the website in the first instance”.

The regulator said: “There is an ongoing FCA investigation into the circumstances that have led to this action.”

The FCA, chaired by Charles Randell, is to publish new rules in the next two months to clamp down on peer-to-peer sites, according to the Sunday Times. It aims to give investors an “appropriateness” test before they hand over cash, and could cap the amount lent at 10% of their savings.

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